Bill > H2842

This bill establishes new provisions under Chapter 93 of the General Laws to address unfair competition arising from the use of stolen or misappropriated information technology in the manufacturing of goods. It defines "unfair competition" as manufacturing an article or product using stolen or misappropriated information technology, where that product is then sold or offered for sale in the state and competes with products made without such illicit technology. The bill outlines how the use of stolen or misappropriated information technology can be proven, and defines key terms like "manufacture" (excluding contracting out production), "stolen or misappropriated information technology" (excluding hardware or software not available for retail purchase), and "information technology" (encompassing technology used to support design, manufacturing, distribution, marketing, or sales). It also specifies that "article or product" does not include services. Importantly, the bill includes limitations, exempting from liability the sale of copyrightable end products, claims based on patent or trade secret infringement, and situations involving violations of open-source licenses. Before legal action can be taken, the alleged offender must receive written notice of the use of stolen or misappropriated information technology and be given 90 days to cease its use, with specific requirements for what this notice must contain. An affirmative defense is available if the aggregate retail value of the stolen or misappropriated information technology is less than $10,000. The bill grants courts the right to allow inspection of business premises and relevant evidence. Remedies for violations include injunctive relief to stop sales, and actual or statutory damages, with potential for treble damages if the use was willful, and awards of attorney's fees. Injured persons are defined as competitors whose products are not manufactured using stolen or misappropriated technology. The bill also allows for in rem jurisdiction against the offending articles or products themselves. It provides affirmative defenses for third parties, including end consumers, small or medium enterprises (with annual revenues under $50 million), those who acquired products in good faith with assurances or codes of conduct, and those who have implemented responsible supply chain practices. Finally, there is an eighteen-month transition period before orders can be enforced against third parties.