HLS 11RS-2881 ORIGINAL Page 1 of 2 Regular Session, 2011 HOUSE STUDY REQUEST NO. 7 BY REPRESENTATIVE FOIL CONSUMERS/PROTECTI ON: Requests the House Committee on Commerce to study the problems surrounding the use of stolen or misappropriated information technology A STUDY REQUEST1 To the House Committee on Commerce to study the problems surrounding the use of stolen2 and misappropriated information technology and to report its findings to the House3 of Representatives no later than sixty days prior to the convening of the 20124 Regular Session of the Legislature of Louisiana.5 WHEREAS, manufacturers are a vital source of jobs and economic growth in the6 state of Louisiana; and7 WHEREAS, law abiding manufacturers in this state suffer lost sales, market share,8 and jobs when they are forced to compete against companies that use stolen or9 misappropriated information technology to reduce production costs and gain a competitive10 edge; and11 WHEREAS, the theft of American information technology is particularly rampant12 in foreign markets, reaching as high as ninety percent in some countries; and13 WHEREAS, information technology theft costs the United States economy thousands14 of jobs and billions of dollars in economic growth; and15 WHEREAS, the use of stolen or misappropriated information technology unfairly16 lowers manufacturers' costs of production by tens if not hundreds of thousands of dollars;17 and18 WHEREAS, manufacturers that knowingly use significant amounts of stolen or19 misappropriated information technology to reduce their costs should not be allowed to20 benefit from their illegal acts; and21 HSR NO. 7 HLS 11RS-2881 ORIGINAL Page 2 of 2 WHEREAS, existing laws relating to unfair trade practices do not adequately address1 the harms that occur when manufacturers use stolen or misappropriated information2 technology to gain an unfair competitive advantage over companies that play by the rules;3 and4 WHEREAS, it is important for the state of Louisiana to enable effective recourse5 against manufacturers that obtain an unlawful competitive advantage by using stolen or6 misappropriated information technology to make goods; and7 WHEREAS, to accomplish this purpose, law abiding manufacturers who have8 suffered economic harm from a directly competing manufacturer's sale of products made9 using stolen or misappropriated information technology should be allowed to pursue a cause10 of action against the company that used the stolen or misappropriated information11 technology; and12 WHEREAS, the remedies available to the law abiding manufacturer in such cases13 should be limited to ensure that the relief obtained is proportional to the harm; and14 WHEREAS, to safeguard against the possibility of frivolous litigation or other15 negative consequences, the law should also provide carefully circumscribed procedures and16 exemptions designed to protect businesses that make good faith efforts to act in accordance17 with their legal responsibilities.18 THEREFORE, the House of Representatives of the Legislature of Louisiana requests19 the House Committee on Commerce to study the problems surrounding the use of stolen and20 misappropriated information technology and to report its findings to the House of21 Representatives no later than sixty days prior to the convening of the 2012 Regular Session22 of the Legislature of Louisiana.23 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Foil HSR No. 7 Requests the House Committee on Commerce to study the problems surrounding the use of stolen and misappropriated information technology and report its findings no later than 60 days prior to the 2012 R.S.