Source: Agribusiness Portal - 25/10/2012

Attorney General of the State of Massachusetts, USA, barred a Thai seafood processor for illegal use of IT in its business operations; the first application of the american law against unfair competition is a warning to Brazilian companies operating in this market

On October 18, in compliance with the law to combat unfair IT competition, Massachusetts Attorney General Martha Coakley took legal action against a Thai seafood exporter who makes illegal use of Information Technology (IT) to reduce your operating costs. The prosecutor demanded that the company adapt IT and pay a fine to continue operating in the United States. This was the first American penalty against exporting companies after the creation of laws to combat unfair IT competition.

According to Gérson Schmitt, president of ABES (Brazilian Association of Software Companies), this movement against infringing companies can be a great opportunity for Brazil, as it is the country with the lowest piracy rate among emerging countries: 53%, while China reaches 77%.

“Brazilian companies only have reasons to benefit from legalized IT. Brazil can differentiate itself in the market compared to those that do not use licensed IT and protect its business against possible interruptions and improve its global reputation ”, says Schmitt.

American anti-piracy laws

Schmitt explains that this attitude was not surprising, given the growing pressure from American lawmakers and officials seeking to curb unfair competition and ensure global equality of suppliers and manufacturers.

The application of general rules to combat unfair competition for this purpose reflects the movement initiated in states such as Washington, Massachusetts and Louisiana, which came to adopt specific laws to curb unfair competition caused by the use of illegal information technology. These standards are intended to ensure that products traded on the American market are manufactured with licensed IT.

Awareness of Brazilian businessmen

"We are working in Brazil with education campaigns to ensure that Brazilian companies are fully aware of the barriers they may face in accessing the American market, as they do not use legalized software", says the president of ABES.

Earlier this year, ABES launched the “Exporte Legal” campaignwww.exportelegal.com.br  in partnership with ETCO - Brazilian Institute of Competitive Ethics, MBC - Competitive Brazil Movement and CNCP - National Council to Combat Piracy, with the aim of alerting and encouraging Brazilian businesspeople to take responsibility for their IT, through appropriate licensing. For the month of November, the launch of the second phase of the campaign is scheduled, with the theme “Legal Entrepreneur”, which will bring a portal of complaints against software piracy.

“Various sectors of the industry will have great opportunities with the application of unfair competition rules in IT, such as the automobile, technology, textile and food products industries, among others. These segments today are responsible for several local jobs, and have the possibility of having a great competitive gain in the international market the greater the percentage of legality in relation to the use of IT ”, concludes Schmitt.

Useful sites:

• Narong Seafood Co. statement on becoming compliant.
• Statements from Massachusetts AFL-CIO and competitor site Pier Fish on the Massachusetts Competes website
• Unfair Competition Laws - NAAG News

About ABES

ABES, Brazilian Association of Software Companies, is the most representative entity in the sector with around 1500 associated or associated companies, distributed in 21 Brazilian states, responsible for the generation of more than 100 thousand direct jobs and an annual turnover in the order of USD 14 billion a year.

The companies associated with ABES represent 90% of the revenue of the software development and commercialization segment in Brazil and 33% of the total revenue of the IT sector, equivalent in 2011 to USD 42,5 billion in sales of software, IT services and hardware .

Since its foundation, on September 9, 1986, the entity has exercised the mission of sectorial representation in the legislative and tax areas, in proposing and guiding policies aimed at strengthening the value chain of the Brazilian Software and Services Industry - IBSS, in defense intellectual property and combating piracy of national or international software and supporting initiatives to promote research, development, innovation and the development of national software.