US competition law to impact Indian exporters

New Delhi, April 11 (IANS) An Indian industry lobby Wednesday voiced concern over a new competition law in the US that says only those manufacturers who can provide proof of using genuine hardware and licensed software for their business should be allowed to export to the country.

The law has been passed in Washington and Louisiana. Attorney generals of 39 other states have signed a resolution to combat unfair trade practices in manufacturing by preventing usage of illegal unlicenced software, which they say provide an unfair advantage in the market place.

The law aims at preventing unfair competition between IT compliant manufacturers and the non-compliant competing ones, who use illegal IT, knowingly or unknowingly.

But this could have serious implications for Indian exporters using pirated software, said the Federation of Indian Chambers of Commerce and Industry (FICCI).

FICCI said usage of IT in manufacturing is increasing by leaps as bounds to drive efficiency, productivity and competitiveness. However, this usage is not necessarily well-managed or regulated within companies which are typically focussed on product lines leading to issues of non-compliance and unfair competition market conditions.

FICCI in cooperation with other business organisations like FIEO organised a workshop here to sensitise representatives from chemicals, garments, textiles, steel, automotive, electronics, engineering industries.