senate Bill S3718A

2011-2012 Legislative Session

Relates to the illegal use of stolen or misappropriated computer software

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to consumer protection
Jun 10, 2011 print number 3718a
amend and recommit to consumer protection
Mar 02, 2011 referred to consumer protection

Bill Amendments

Original
A (Active)
Original
A (Active)

S3718 - Bill Details

Current Committee:
Law Section:
General Business Law
Laws Affected:
Add §390-d, Gen Bus L
Versions Introduced in 2009-2010 Legislative Session:
S7658A

S3718 - Bill Texts

view summary

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

view sponsor memo
BILL NUMBER:S3718

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 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 supply services using stolen or
misappropriated software, including software that does not have the
necessary license agreements.

The Attorney General and third parties adversely affected by reason of
a violation of this section, are 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 or supply services
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, and
the companies that are adversely affected, 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

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 90 days after it becomes law.

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

                                  3718

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 2, 2011
                               ___________

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, OR TO DEVELOP OR SUPPLY SERVICES, WHILE USING STOLEN OR MISAP-
PROPRIATED 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, OR ANY PERSON WHO IS  ADVERSELY  AFFECTED
BY  REASON  OF  ANY  VIOLATION  OF SUCH SUBDIVISION, 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.
                                                           LBD07593-01-1

S. 3718                             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 ninetieth day after it shall
have become a law.

S3718A (ACTIVE) - Bill Details

Current Committee:
Law Section:
General Business Law
Laws Affected:
Add §390-d, Gen Bus L
Versions Introduced in 2009-2010 Legislative Session:
S7658A

S3718A (ACTIVE) - Bill Texts

view summary

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

view sponsor memo
BILL NUMBER:S3718A

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

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.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3718--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 2, 2011
                               ___________

Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07593-02-1

S. 3718--A                          2

  (1)  INCREASE  THE  DAMAGES  UP  TO THREE TIMES THE DAMAGES ALLOWED BY
PARAGRAPH (A) OF THIS SUBDIVISION WHERE THE DEFENDANT HAS BEEN FOUND  TO
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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