US competition law likely to impact Indian exporters: FICCI

The new US competition law that allows only those manufacturers to export to the US who can provide proof of using genuine hardware and licensed software for their business has led to concerns in the Indian industry. It is anticipated that the new law will seriously impact the Indian exporters who use pirated software.

However, the US is of the view that the law will help prevent unfair competition between IT compliant and the non-compliant manufacturers. It will also prevent usage of illegal IT either knowingly or unknowingly. The first law in this regard was passed in the states of Washington and Louisiana on November 4, 2011. Now Attorney Generals of 39 US states have signed a resolution to combat unfair trade practices. 

Indian industry body FICCI has raised concerns over the new law. The industry body is of the view that 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 focused on product lines leading to issues of non compliance and unfair competition market conditions.

FICCI in cooperation with other business organizations like FIEO organized a workshop to sensitize representatives from chemicals, garments, textiles, steel, automotive, electronics, engineering industries about the law.