Narong Seafood settles piracy suit with US state

The payment will facilitate the exporter’s further access to the US market.

The company yesterday said it had made the decision by putting the interests of its customers above all else.

"This was important for our continued access to the US market," assistant managing director Arthon Piboonthanapatana said. "Complying with laws where we do business was the right thing to do for our customers in the US, our employees and the long-term security of our business."

He added: "We are glad to have this settlement in place with the attorney-general [of Massachusetts]. It is evidence of our compliance."

Last week, Massachusetts announced a $10,000 settlement with Narong Seafood as part of a case related to the state’s unfair-competition law.

The state alleged that the company had used unlicensed software at its Thai plant, which produces seafood products for the US market.

Narong Seafood agreed that the company had overlooked some software licensing, but said it had now completed a thorough software auditing process to ensure its compliance with the Thai Copyright Act.

The company now uses only licensed software.

"The settlement will also give us a competitive edge over competitors from other countries where piracy is rampant. Customers and buyers in the US will be more aware of this law and ensure that they only deal with companies like us," said Arthon.

Wiramrudee Mokkhavesa, a lawyer at Tilleke & Gibbins International, said it was a landmark move that a US state attorney-general had exercised its authority under state competition law and entered into an agreement with a foreign manufacturer to use licensed information technology in its business operations.

This development is a result of the growing pressure from US legislators and officials who are seeking to curb unfair competition and ensure a level global playing field for suppliers and manufacturers, the legal firm said.

The efforts to address IT theft in the US will complement efforts by Thailand’s law-enforcement agencies, including the Intellectual Property Department and the Economic Crime Division, to help further reduce software piracy in Thailand, it added.

"The fact that the Massachusetts attorney-general has taken direct enforcement action against a company across the globe in Thailand highlights the need for Thai companies to license their IT," Wiramrudee said.

"The settlement reached with the attorney-general was a smart business decision, and other manufacturers and suppliers also need to move swiftly to avoid disruption to their business in the US market."