Bill Text: NY S05368 | 2021-2022 | General Assembly | Introduced


Bill Title: Proves that it is a deceptive act in the conduct of any business, trade or commerce to threaten civil litigation, where such threat relates to an alleged violation of intellectual property rights unless the person so threatened makes a payment of money.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO CONSUMER PROTECTION [S05368 Detail]

Download: New_York-2021-S05368-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          5368

                               2021-2022 Regular Sessions

                    IN SENATE

                                      March 3, 2021
                                       ___________

        Introduced by Sen. OBERACKER -- read twice and ordered printed, and when
          printed to be committed to the Committee on Consumer Protection

        AN  ACT to amend the general business law, in relation to deceptive acts
          and practices in the conduct of any business, trade or commerce

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Section  349  of  the  general business law is amended by
     2  adding a new subdivision (k) to read as follows:
     3    (k) For purposes of this article, in addition to any  other  deceptive
     4  act  or practice determined by law, it shall also constitute a deceptive
     5  act or practice in the conduct of any business, trade or  commerce,  for
     6  any person, firm, corporation or association or agent or employee there-
     7  of,  to  make  an  unsolicited threat concerning an alleged violation of
     8  intellectual property rights.
     9    (1) For purposes of this subdivision, an unsolicited threat concerning
    10  an alleged violation of intellectual property rights shall consist of:
    11    (i) threatening civil litigation, where  such  threat  relates  to  an
    12  alleged  violation  of intellectual property rights, unless the party so
    13  threatened makes a payment of money to a person,  firm,  corporation  or
    14  association or agent or employee thereof, by a date certain; or
    15    (ii)  demanding  payment  from  a person by a date certain, where such
    16  demand relates to an alleged violation of intellectual property  rights,
    17  unless  the  person  so  demanded  makes  a  payment  of money by a date
    18  certain, and that unless such initial demanded payment is  made  by  the
    19  demandee  by such date certain, then such demanded payment will increase
    20  to a higher demanded amount after such date certain.
    21    (2) This subdivision shall not apply to an attorney licensed to  prac-
    22  tice  law before the courts of the state of New York, and/or licensed to
    23  practice intellectual property law before  the  federal  courts  of  the
    24  United  States,  where such attorney has been duly retained and employed
    25  by the registered holder of intellectual property rights, in  accordance

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10094-01-1

        S. 5368                             2

     1  with  federal  law,  and  is  making such demand consistent with ethical
     2  guidelines governing the conduct of attorneys, in  the  course  of  such
     3  attorney's representation of such registered holder, during a non frivo-
     4  lous dispute for an alleged violation of such registered holder's intel-
     5  lectual property rights.
     6    § 2. This act shall take effect immediately.
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