Louisiana House Bill HB231

Louisiana 2011 Regular Session

• Introduced: 4/25/11
• Refer: 4/25/11

Caption

Provides relative to stolen or misappropriated information technology (OR SEE FISC NOTE GF EX)

Impact

The potential impact of HB 231 is significant, as it seeks to amend and enhance existing laws governing the use of intellectual property in manufacturing. The bill stipulates defined liabilities and introduces remedies, including injunctions and damages for violations. It provides a framework for addressing third-party sales of compromised products while establishing a detailed notice and cure process for manufacturers believed to be in violation. Notably, the bill also incorporates opportunities for affirmative defenses for third parties to mitigate liability under certain circumstances.

Summary

House Bill 231 introduces stringent regulations against the use of stolen or misappropriated information technology in the manufacturing of products sold or offered for sale within the state. The bill aims to combat unfair competition by prohibiting the development and provision of services that utilize such technology, specifically targeting instances where the retail price of improperly manufactured products results in a material price difference of at least 3% over a four-month period compared to legally produced alternatives. This legislative measure is positioned as a protection for lawful businesses competing in the same market segment.

Sentiment

The sentiment surrounding HB 231 appears to be predominantly supportive from the legal perspective of protecting intellectual property rights and fostering fair competition. However, there is also a level of concern among potential stakeholders about the bill's implications for smaller businesses and entities that may unintentionally engage in practices considered illegal under this legislation. This duality is reflected in discussions, where advocates highlight the need to protect innovation, while critics warn about overreach that might stifle legitimate commerce.

Contention

Notably, points of contention regarding HB 231 include the breadth of the definitions used within the bill and the potential for punitive measures against manufacturers. There is concern that the definitions of what constitutes 'stolen or misappropriated technology' could be interpreted too broadly, leading to undue penalties for businesses acting in good faith. Additionally, the enforcement process for violations is a point of debate, with discussions centering on whether the proposed measures adequately balance the need for protection against overregulation that might hinder market entry for smaller companies.