NY State Senate Bill 2013-S2990

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 28, 2013	referred to consumer protection

2013-S2990 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §390-d, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7658
2011-2012: S3718

2013-S2990 (ACTIVE) - Summary

Relates to the illegal use of stolen or misappropriated computer software; adds definitions and penalties.

2013-S2990 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S2990

TITLE OF BILL:  An act to amend the general business law, in relation
to stolen or misappropriated computer software

PURPOSE OF THE BILL:  To make it unlawful for a person to develop or
manufacture a product or supply services using stolen or
misappropriated software.

SUMMARY OF SPECIFIC PROVISIONS:  This bill adds a new § 390-d to the
General Business Law to make it unlawful for a person to develop or
manufacture a product or using stolen or misappropriated software,
including software that does not have the necessary license
agreements.

The Attorney General is empowered to enjoin further violation and to
recover actual damages, including treble damages upon a showing of a
pattern or practice of violating the provisions of this law.

JUSTIFICATION:  When businesses, including businesses in foreign
countries, use stolen software to make products that are offered to
New York consumers, they gain an unfair competitive advantage over
businesses that use legal, properly licensed software. This radically
tilts the competitive playing field by rewarding businesses that break
the law-costing New York businesses billions of dollars and costing
New York State and local governments hundreds of millions of dollars

in direct revenue.

Although federal copyright law allows software companies to combat the
act of software theft, there are currently few avenues to address the
harms to competition that flow from the use of stolen software.

This measure provides a crucial new tool to go after those who use
stolen or pirated software to hurt competitors, not just software
pirates. It does so by making the use of stolen/pirated software to
create and sell products unlawful, giving the Attorney General and
adversely-affected Parties the enforcement tools to stop and punish
those who use stolen goods to harm New York businesses. Moreover, it
makes law-breakers liable not only for the first item sold, but also
for the full extent of the product or services made and sold based on
the stolen software.

The need for additional tools to combat the economic damage caused by
the illegal use of stolen software is obvious. In 2008, worldwide
software piracy was pegged at 41 percent representing losses of over
$50 billion. Yet, the real economic damage reaches well beyond the
Piracy itself; it extends to the very fabric of the use of
intellectual property in the development of the innovative products
and services. It means fewer jobs in New York, less innovation,
hundreds of millions of dollars in lost tax revenue and reduced
economic growth overall.

This measure will provide the State, through the Attorney General, the
legal construct to fight back against this pernicious use of stolen
computer software and the intellectual property behind it.


PRIOR LEGISLATIVE HISTORY:  2010: S.7658A Passed Senate 2011: 03/02/11
- Referred to Consumer Protection
      06/10/11 - Amend and Recommit to Consumer Protection
      06/10/11 - Print Number 3718A 2012: 01/04/12 - Referred to
Consumer Protection

FISCAL IMPLICATIONS:  According to a 2007 study, software piracy alone
costs New York taxing jurisdictions more than $344M in lost tax
revenue alone.

EFFECTIVE DATE:  This act shall take effect 180 days after it becomes
law.

2013-S2990 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2990

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 28, 2013
                               ___________

Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business  law,  in  relation  to  stolen  or
  misappropriated computer software

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new section
390-d to read as follows:
  S 390-D. ILLEGAL USE OF STOLEN OR MISAPPROPRIATED  COMPUTER  SOFTWARE;
PENALTIES.    1.  FOR  THE  PURPOSES OF THIS SECTION, THE TERM "COMPUTER
SOFTWARE"  SHALL  MEAN  AN  ORDERED  SET  OF  DATA  REPRESENTING   CODED
INSTRUCTIONS  OR  STATEMENTS  THAT, WHEN EXECUTED BY COMPUTER, CAUSE THE
COMPUTER TO PROCESS DATA OR DIRECT THE COMPUTER TO PERFORM ONE  OR  MORE
COMPUTER OPERATIONS, OR BOTH.
  2.  IT IS UNLAWFUL FOR A PERSON TO DEVELOP OR MANUFACTURE A PRODUCT OR
PRODUCTS  WHILE  USING  STOLEN  OR  MISAPPROPRIATED  COMPUTER  SOFTWARE,
INCLUDING,  BUT  NOT LIMITED TO COMPUTER SOFTWARE THAT DOES NOT HAVE THE
NECESSARY LICENSE AGREEMENTS, WHERE ANY SUCH PRODUCTS  OR  SERVICES  ARE
SOLD OR OFFERED FOR SALE IN THIS STATE.
  3.  (A)  THE ATTORNEY GENERAL MAY BRING AN ACTION AGAINST A PERSON WHO
VIOLATES THE PROVISIONS OF SUCH SUBDIVISION:
  (1) TO ENJOIN FURTHER VIOLATION OF THE PROVISIONS OF  SUBDIVISION  TWO
OF THIS SECTION; AND
  (2) TO RECOVER THE GREATER OF:
  (A) ACTUAL DAMAGES; OR
  (B) ONE THOUSAND DOLLARS FOR EACH VIOLATION OF SUBDIVISION TWO OF THIS
SECTION.
  (B) IN AN ACTION UNDER PARAGRAPH (A) OF THIS SUBDIVISION, A COURT MAY:
  (1)  INCREASE  THE  DAMAGES  UP  TO THREE TIMES THE DAMAGES ALLOWED BY
PARAGRAPH (A) OF THIS SUBDIVISION WHERE THE DEFENDANT HAS BEEN FOUND  TO

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06026-01-3

S. 2990                             2

HAVE  ENGAGED  IN  A PATTERN AND PRACTICE OF VIOLATING THE PROVISIONS OF
SUBDIVISION TWO OF THIS SECTION; AND
  (2) AWARD COSTS AND REASONABLE ATTORNEY'S FEES TO A PREVAILING PARTY.
  (C)  FOR  THE PURPOSES OF THIS SECTION, A VIOLATION SHALL BE DEEMED TO
HAVE OCCURRED EACH TIME A PRODUCT OR SERVICE IS SOLD OR OFFERED FOR SALE
IN THIS STATE.
  4. NOTHING CONTAINED IN THIS SECTION SHALL IN ANY WAY LIMIT THE RIGHTS
OR REMEDIES WHICH ARE OTHERWISE AVAILABLE  UNDER  LAW  TO  THE  ATTORNEY
GENERAL OR ANY OTHER PERSON AUTHORIZED TO BRING AN ACTION UNDER SUBDIVI-
SION  THREE  OF  THIS SECTION, NOR SHALL IT LIMIT THE ENFORCEMENT OF ANY
APPLICABLE PROVISION OF THE PENAL LAW.
  S 2. Severability. If any clause, sentence, paragraph, section or part
of this act shall be adjudged by any court of competent jurisdiction  to
be  invalid,  the  judgment  shall not affect, impair, or invalidate the
remainder thereof, but shall be confined in its operation to the clause,
sentence, paragraph, section or part thereof directly  involved  in  the
controversy in which the judgment shall have been rendered.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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Senate Bill S2990

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2013-S2990 (ACTIVE) - Details

2013-S2990 (ACTIVE) - Summary

2013-S2990 (ACTIVE) - Sponsor Memo

2013-S2990 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2990

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Sponsored By

Eric Adams

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2013-S2990 (ACTIVE) - Details

2013-S2990 (ACTIVE) - Summary

2013-S2990 (ACTIVE) - Sponsor Memo

2013-S2990 (ACTIVE) - Bill Text download pdf

Comments