S.B. 239 Enrolled

UNFAIR BUSINESS PRACTICES
2004 GENERAL SESSION
STATE OF UTAH
Sponsor: Mike Dmitrich
Ron AllenCurtis S. Bramble
LONG TITLE
General Description:
This bill enacts provisions within the Commerce and Trade Code related to unfair
competition.
Highlighted Provisions:
This bill:
. defines unfair competition; and
. provides a private right of action for a person injured by unfair competition.
Monies Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
13-5a-101, Utah Code Annotated 1953
13-5a-102, Utah Code Annotated 1953
13-5a-103, Utah Code Annotated 1953

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 13-5a-101 is enacted to read:
CHAPTER 5a. UNFAIR COMPETITION ACT
13-5a-101. Title.
This chapter is known as the "Unfair Competition Act."

Section 2. Section 13-5a-102 is enacted to read:
13-5a-102. Definitions.
As used in this chapter:
(1) "Control" means:
(a) ownership of more than 5% of the voting shares or ownership interests of an entity;
(b) the power to vote more than 5% of the voting shares of an entity; or
(c) the ability to influence the management of an entity.
(2) "Cyber-terrorism" means:
(a) the unlawful use of computing resources to intimidate or coerce others;
(b) accessing a computer without authorization or exceeding authorized access;
(c) willfully communicating, delivering, or causing the transmission of a program,
information, code, or command without authorization or exceeding authorized access;
(d) intentionally or recklessly:
(i) intends to defraud or materially cause damage or disruption to any computing
resources or to the owner of any computing resources; or
(ii) intends to materially cause damage or disruption to any computing resources
indirectly through another party's computing resources.
(3) "Depository institution" is as defined in Section 7-1-103 .
(4) (a) Except as provided in Subsection (4)(b), "unfair competition" means an intentional
business act or practice that:
(i) (A) is unlawful, unfair, or fraudulent; and
(B) leads to a material diminution in value of intellectual property; and
(ii) is one of the following:
(A) cyber-terrorism;
(B) infringement of a patent, trademark, or trade name;
(C) a software license violation; or
(D) predatory hiring practices.
(b) Notwithstanding Subsection (4)(a), "unfair competition" does not include the

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departure and hiring of an employee by a competitor.
Section 3. Section 13-5a-103 is enacted to read:
13-5a-103. Private action for unfair competition.
(1) (a) Except as provided in Subsection (2), a person injured by unfair competition may
bring a private cause of action against a person who engages in unfair competition.
(b) In an action under this Subsection (1), a person injured by unfair competition may
recover:
(i) actual damages;
(ii) costs and attorney fees; and
(iii) if the court determines that the circumstances are appropriate, punitive damages.
(2) A person may not bring an action described in Subsection (1) against:
(a) a depository institution; or
(b) an entity that:
(i) controls a depository institution;
(ii) is controlled by an entity that controls a depository institution; or
(iii) is controlled by a depository institution.

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