USE OF MISAPPROPRIATED IT AN UNFAIR PRACTICE.

View NCGA Bill Details2011-2012 Session
House Bill 672 (Public) Filed Wednesday, April 6, 2011
TO MAKE MANUFACTURE OF ANY ARTICLE OR PRODUCT WHILE USING STOLEN OR MISAPPROPRIATED INFORMATION TECHNOLOGY AN UNFAIR ACT.
Intro. by Steen, T. Moore, Wilkins.

Status: Ref To Com On Rules, Calendar, and Operations of the House (House Action) (Apr 7 2011)
H 672

Bill Summaries:

  • Summary date: Apr 6 2011 - More information

    Adds new Article 1A to GS Chapter 75.
    Adds new GS 75-48 to define relevant terms.
    Adds new GS 75-48.1 to specify that it constitutes an unfair act for any person to manufacture any article or product while using stolen or misappropriated information technology in the person’s business operations which causes a material competitive injury as a result of such use and where the article or product is sold or offered for sale in this state and in competition with an article or product that was manufactured without constituting an unfair act. Specifies that persons who commit an unfair act are subject to certain liabilities and remedial provisions. Provides for certain exceptions.
    Adds new GS 75-48.2 to specify that a person subject to liability under GS 75-48.1 must receive written notice of the alleged use of the stolen or misappropriated information technology and be afforded an opportunity to cure the violation. Specifies contents of notice. Requires that notice be certified. Authorizes the information technology owner or its agent to extend the statutory period for person to cure violation.
    Adds new GS 75-48.3 to authorize the Attorney General or any injured persons (as defined by the statute) to commence an action against a person who is subject to GS 75-48.1(a) no earlier than 90 days after providing notice. Specifies remedies that may be imposed by court. Authorizes the Attorney General or any injured persons to add to an action a claim for actual direct damages against a third party who sells or offers to sell in this state products made by a person who is found to have violated GS 75-48.1(a), subject to certain restrictions and procedural requirements. Provides that an award of damages against a third party must be the lesser of the retail price of the stolen or misappropriated information technology at issue or $250,000, less any amount recovered from the person adjudicated to have violated GS 75-48.1(a). Prohibits award of treble damages against third party. Allows court to award attorneys’ fees according to specified criteria. Authorizes injunctive relief against person found to have violated GS 75-48.1(a) and against third party who sells or offers to sell in this state products made by a person who is found to have violated GS 75-48.1(a), subject to certain conditions. Authorizes court to establish a longer cure period for alleged violator of GS 75-48.1(a).
    Adds new GS 75-48.4 to prohibit injunction against any person other than the person adjudicated to have violated GS 75-48.1(a).
    Adds new GS 75-48.5 to authorize a court that is unable to obtain personal jurisdiction over a person subject to GS 75-48.1(a) to proceed in rem against any articles or products subject to GS 75-48.1(a) sold or offered for sale in this state in which the person alleged to have violated GS 75-48.1(a) holds title, subject to certain restrictions and procedural requirements.
    Adds new GS 75-48.6 to provide for certain affirmative defenses for third parties subject to liability under GS 75-48.3.
    Adds new GS 75-48.7 to specify that GS 75-1 to GS 75-16.2 do not apply to this Article and to provide that the remedies authorized by the Article are exclusive.
    Adds new GS 75-48.8 to provide a severability clause.
    Effective 90 days after the act becomes law, except that no award of damages against a third party pursuant to GS 75-48.3(c) may be enforced until 18 months have elapsed from the date the act becomes law.


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