STATE OF NEW YORK ________________________________________________________________________ 9025 IN SENATE June 14, 2018 ___________ Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Rules 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 26 with federal law, and is making such demand consistent with ethical 27 guidelines governing the conduct of attorneys, in the course of such 28 attorney's representation of such registered holder, during a non frivo- 29 lous dispute for an alleged violation of such registered holder's intel- 30 lectual property rights. 31 § 2. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD16187-02-8