A Pithampur-based textile firm, Pratibha Syntex, has been directed to cough up $100,000 (Rs 66 lakh) within a month to settle the charges of using pirated software – including Microsoft and Adobe programs – in its operations. Pirated software had given  it competitive advantages over American businesses, Los Angeles Superior Court had observed.

“Pratibha Syntex engaged in illegal business practices that placed California garment companies at a disadvantage, while hurting American software companies’ ability to develop new and innovative products,” California Attorney General Kamala Harris said.

“Businesses around the globe should be on notice that the state of California will hold them accountable for stealing intellectual property to unfairly undercut their competition,” she said.

Company vice-president Ashok Jain said, “I am not in a position to comment whether the firm will be paying the amount. We are in touch with our legal advisers in the US and India. A statement will be issued tomorrow (on Wednesday).”

In 2013, Harris sued Pratibha Syntex on the basis, that it did not pay licensing fees for software it relied on for its business, including products manufactured by Adobe, Microsoft and others, giving the company a significant cost advantage in the low-margin business of apparel manufacturing, shipment and sales.

Harris alleged that Pratibha Syntex gained an unfair competitive advantage over the American-based companies by using pirated software in the production of clothing imported and sold in California.

The landmark settlement prohibits Pratibha Syntex from using the unlicensed software or reproducing any part of the copyrighted software program without the permission of the legitimate copyright holder and further require the company to perform four complete audits of the software on their computers and fix any violations within 45 day.

By Premji