New U.S. Law Affects Users of Unlicensed or Pirated IT

Manufacturers whose products are sold, or offered for sale, in Washington State should be aware of a new unfair competition law in that state. The new law, which went into effect on 22 July 2011, imposes civil liability on manufacturers who use IT that is either stolen or misappropriated. Proceedings can be brought by competing manufacturers or the Washington State Attorney General if such IT is used in the manufacture, distribution, marketing or sale of products sold or offered for sale in the state. This may become a growing trend in the U.S., as a similar law has already been passed in Louisiana. Other states are likely to follow.

The new laws seek to level the playing field so that users of illegal or unauthorized IT will no longer enjoy the competitive advantage of being able to use such IT for free, thus competing unfairly against competitors in the marketplace who choose to use only legal and legitimate IT to conduct their business. Moreover, those