Senators to FTC: Let’s Fight Back Against Foreign Manufacturers Using Pirated Software

A number of Senators from the Small Business Committee have drafted a letter advancing an issue that should be very important to U.S. manufacturers and software innovators. Specifically, the Senators wrote to the Federal Trade Commission, reprising an issue raised by 39 state Attorneys General last November, stating that our trading partners should not be competing unfairly by using stolen software.

Software piracy is widespread, particularly so in a few countries that compete with American manufacturers. A study funded by the Business Software Alliance found the software piracy rate in China is 79%. In Mexico it is 60% and in Vietnam 85%. An alarming number of foreign manufacturers are using sophisticated software to assist with industrial design, product development, and communications management. The problem is they aren’t paying for it. American companies do.

The Senators raised an important point that I hope the FTC takes to heart. We should not be letting our foreign manufacturers gain a competitive advantage over U.S. companies by breaking the law. If the Commission can determine they are using pirated software at the expense of our domestic industries, it should use its jurisdiction over unfair trade practices to remedy the situation.