Alibaba Group Holding Ltd’s (BABA.N) hugely popular Taobao Marketplace is one of 25 online markets that along with 18 physical markets made the USTR’s annual list of the world’s most “notorious markets” for sales of pirated and counterfeit goods. While Taobao’s inclusion does not carry any direct penalties, it is a blow to Alibaba’s efforts to shed perceptions that its sites are riddled with fakes and that its anti-piracy policies are inadequate. “A high volume of infringing products reportedly continue to be offered for sale and sold on Taobao.com and stakeholders continue to report challenges and burdens associated with IP enforcement on the platform,” the USTR said.