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Defending American Innovation from Foreign IP Theft

There are few things U.S. workers value more than protecting the fruits of their labor and creativity. On Friday — World Intellectual Property Day — businesses across sectors and throughout the country celebrate American innovation, the millions of high-paying jobs it creates and the invaluable role it plays in rebuilding our economy.

However, today is also a reminder that this innovation is increasingly jeopardized by foreign companies that steal intellectual property to gain an unfair edge, and serves as a call to stand up for American ideas and jobs.

Rampant intellectual-property theft, especially in emerging markets with weak legal systems, enables those companies to cut costs, harming both U.S. manufacturing and technology employers. It destroys American jobs, slows economic growth and undermines our ability to compete.

Those companies invest savings from using pirated software and other stolen intellectual property to hire more staff, grow their facilities and expand research and development. Their savings from using pirated software can provide a real competitive advantage in any industry, especially where margins are thin. Meanwhile, American softwaredevelopers are discouraged from investing in new technology and products when they know their software will be stolen.

We can’t ignore the impact: There are 2.5 million fewer jobs today because of stolen intellectual property, according to the International Chamber of Commerce.

Fortunately, some leaders are working to tackle this crisis.

Recently, my successor as Washington state’s attorney general, Bob Ferguson, helped resolve a dispute over software-licensing issues with the world’s fourth-largest aircraft manufacturer, using a first-of-its-kind unfair-competition law. The new law, which I helped pass in 2011, bans the sale of products manufactured using stolen or misappropriated technology in the state of Washington.

Massachusetts Attorney General Martha Coakley recently forcedThailand-based Narong Seafood Co. to pay $10,000 to resolve charges that its use of unlicensed software provided an unfair competitive advantage over Massachusetts businesses. In California, Attorney General Kamala Harris filed lawsuits against apparel manufacturers inIndia and China for gaining an unfair competitive advantage over American companies by using pirated software in the production of clothing imported and sold in California.

Pirated software and other stolen intellectual property is not a problem for only two or three states. It affects every corner of an American economy which, as the April jobs report suggests, still needs all the help it can get.

Indeed, the Business Software Alliance recently estimated that in 2011, the commercial value of software pirated worldwide was $63.4 billion. According to the alliance, if the United States reduces piracy by just 10 percentage points in two years, it will add $56.8 billion to the gross domestic product, $10.4 billion in U.S. tax receipts, and more than 31,000 new American jobs.

In all, 26 states have enacted laws aimed at protecting fair competition and stopping intellectual-property theft. While states are a key battleground, and I encourage more attorneys general to take action, we need a federal solution. Federal enforcement would elevate public awareness and provide a powerful national remedy to a problem that is clearly national in its impact and scope. It would also deter foreign manufacturers that today use millions in stolen U.S. software and other intellectual property with virtually no risk of legal sanction in their own countries.

Federal action need not preclude state enforcement of intellectual-property protections, either. When it comes to policing fair competition, it’s better to have a federal marshal and 50 state sheriffs working together, rather than just one or the other.

Drew Greenblatt, president of Baltimore-based Marlin Steel Wire Products, sees how piracy in countries such as China and India harm his business. He has seen his designs ripped off and had potential customers pick lower-cost competitors who utilize stolen intellectual property.

“We have to stop this,” Mr. Greenblatt said recently. “Our trade secrets are being stolen from us, and that minimizes the value of creating, which means we’re going to get less orders, which means I can hire less people, which means the recession continues.”

American innovators take great pride in their work — a fact evidenced by the vast amounts of time, energy and resources they pour into their creative efforts. As a nation, we must protect their work. Doing so will save jobs and grow employment in a healthier economy, for a brighter future.

Originally published in The Washington Times: http://www.washingtontimes.com/news/2013/apr/26/defending-us-intellectual-property

In case you haven’t heard

Friends,

In case you haven’t heard, I just completed the first week in my new office at Orrick, Herrington & Sutcliffe – a Seattle law firm which I have joined as a partner. My practice at Orrick, which was founded in San Francisco 150 years ago, will include policy advocacy, regulatory compliance and litigation strategies for clients across the country. I am very excited to be the co-chair of the firm’s Public Policy Group, which will allow me to work with clients to solve their most important legal and competitive issues in state legislatures and before state attorneys general.

In addition to my legal work, I will continue my involvement in issues facing our communities. An example of that was last Thursday, when I hosted Republican National Committee Chairman Reince Priebus and a group of 25 party activists and leaders, to talk about how we can improve our chances for future Republican successes in Washington State and across the country. Chairman Priebus is on a multi-city tour for his Growth & Opportunity Project to analyze the strengths and weaknesses of the party in 2012, and get feedback from grassroots activists, donors and others to develop an action plan for the party through 2014.

I am excited to be involved with this project to help put the party on a path to improve our future prospects. You can read the Seattle Times coverage of our meetinghere, and for a national perspective, take a look here.

I look forward to continue keeping you apprised of my public policy and volunteer work as I continue my transition to the private sector. To help me make sure I am focusing on issues that matter to some of my strongest supporters, I hope you will take a moment and let me know your thoughts about a couple of tax-related issues being proposed in Olympia. Click here to take the three-question survey on my website.

Please remember to keep in touch by liking my Facebook page and following me on Twitter.

All the best,

Rob

Roanoke wrap-up

Friends,

Last month I had the tremendous opportunity to join nearly 500 Republicans in Ocean Shores for the 4th annual Roanoke Conference. Roanoke is by far the most compelling Republican event we have in Washington state all year. This year’s was no exception!

What I like most about the conference is that it is positive, constructive and forward looking – with plenty of emphasis on policy solutions. I don’t have to tell you that last year’s election wasn’t what any of us had hoped for, but I talked with literally hundreds of upbeat party activists who are already pushing forward.

With record-breaking attendance and a large contingent of College Republicans and other young people, I’m more convinced than ever that our best days are ahead for our party in Washington State.

I’m already looking forward to next year’s conference which, if tradition holds, will be from January 24-26, 2014. Mark your calendars now so you don’t miss out – karaoke night alone is worth the cost of registration!

All my best,

Rob

PS – One of the more exciting developments at this year’s conference was the launch of the Northwest Republican Community Fund by Todd Myers. Marilyn and I were proud to be among the first to pledge our support of NWRCF , which is simply described as “A charitable matching fund that harnesses the power of conservative generosity by helping our neighbors move from dependence to self sufficiency.” Please check it out at http://www.nwrcf.org.

The next step

Friends,

Yesterday I participated in my final public appearance as your Washington State Attorney General. I had the honor of once again addressing a joint session of state legislature, and my message was a simple one – thank you for the opportunity to serve.

And today, as I leave the office I have proudly led for the last eight years, I wanted to share that same message with my longest and strongest supporters – thank you.

It has been you and tens of thousands of others like you across our state who have provided me with the support, advice and inspiration that have made these years the most professionally satisfying of my life. Words can’t really express the gratitude I have for you all for giving me this opportunity.

I am now turning the page on that chapter in my life, and looking forward to returning to private law practice and life a political volunteer. I certainly hope our paths will be crossing sometime in the not-to-distant future.

As part of my effort to remain involved in the critical public policy issues facing our state and nation, I will continue to use my email list and social networking tools to communicate my views. However, I want to respect your desires about hearing from me, so if you could, please click here and take just a minute to fill out a short survey, so I know whether you want to continue to remain on my list, and what your suggested priorities are for me to concentrate on in the coming weeks and months.

Thank you and God bless you,

Rob

PS – I look forward to hearing your thoughts on the issues that still face our state, so I appreciate your taking the time to complete the short survey. Also, if we haven’t already, please connect with me on Facebook and Twitter.

Thank you!

McKenna_6134_SmallThank you so much for everything you did to support Team McKenna, for the moral support you have offered Marilyn and me, and for all your work to set a New Direction for Washington.

This campaign is now over, but the work of improving our state continues. Thank you again for everything you’ve done – I won’t forget it.

-Rob