California Attorney General's Office sues exporters for using irregular software


Textile manufacturers in India and China are being sued under allegations of unfair competition against US companies for using unlicensed software in the production of clothing exported to the State of California.

The lawsuits were filed in the Los Angeles County Superior Court against India's Pratibha Syntex Ltd. and Ningbo Beyond Home Textile Co. Ltd. and its sister companies in China, which allegedly violated California's Unfair Competition Act . Since 2010, they have exported tons of clothing products to the State together.

According to California attorney general Kamala Harris, responsible for the actions, the companies are said to be involved in unfair competition for using unlicensed software in their business operations, exporting products that competed with properly licensed California manufacturers. Among the software manufacturers affected by the non-payment of licenses to use software protected by intellectual property are companies such as Adobe, Microsoft and Symantec.

The measures taken by the authorities reinforce that companies in any country that do not use licensed software would benefit from an illegal cost reduction, which justifies concrete actions for the protection of companies in the segment that act in a lawful manner, respecting intellectual property.

These California lawsuits are in line with measures recently implemented by the Massachusetts State Attorney's Office, which in October last year entered into an agreement with a Thai seafood company based on unfair competition law. Under the agreement, the company had to pay a fine, in addition to regularizing the software licenses it uses in its commercial operations in Thailand. These measures by US Attorney Generals show increased awareness and trends in promoting fair competition.

An Orange Business Council study found that California has lost almost 400 jobs in industry and technology in the past decade to countries with piracy rates of up to 80%. This activity resulted in a loss of $ 1,6 billion in economic activity and $ 700 million in tax revenue for California.

“The current American defense scenario for fair competition is yet another reason for Brazilian companies to be motivated to use only licensed technology. This attitude can differentiate Brazil in the market compared to those that do not use licensed IT and protect business from possible interruptions ”, says Gérson Schmitt, president of the Brazilian Association of Software Companies (ABES).


Awareness of Brazilian entrepreneurs - local movement

"ABES is 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 for not using legalized software, as well as the best opportunities for those that use only properly licensed programs" , says the president of ABES.

In 2012, ABES launched the Exporte Legal campaign in partnership with ETCO, the Competitive Brazil Movement (MBC) and the National Council to Combat Piracy (CNCP), with the aim of alerting and encouraging Brazilian entrepreneurs to take responsibility by your IT, through proper licensing.

For this year, the launch of the second phase of the campaign, which will focus on the Legal Entrepreneur, is encouraged, encouraging Brazilian entrepreneurs to create an environment of fair competition within the country. By strengthening legitimate national competition, these companies help Brazil to accelerate its growth and establish itself as a protagonist on the world stage.

More information on the site