House narrows 'unfair competition' bill to include defined cyber offenses and passes private-rights-of-action measure

The Utah House on March 3 amended and passed the third substitute to Senate Bill 239, a measure that creates a private civil remedy for certain computer-related harms and tightens the statutory definition of "unfair competition." Representative John Urquhart (sponsor) led floor amendments that added a specific definition for 'cyberterrorism' and deleted language the floor found vague or overbroad.

Urquhart told the chamber the amendments aimed to "clarify the scope of this bill and target specific acts of unfair competition," focusing on harms to intellectual property, software license violations, misuse of domain names, and related conduct. He said the changes narrow the term "unfair" into criteria tied to unlawful, unfair, or fraudulent acts that result in diminished intellectual property value.

Representative Steve Dougal moved a substitute motion to incorporate Representative Verkhart's amendment and adjust line language; the House adopted the substitute and later approved the bill. Lawmakers asked about overlap with antitrust law; Urquhart acknowledged antitrust could address some conduct but said new computer-era practices may not be covered.

The House passed the third substitute on a roll call: 54 yes, 16 no. Representative Urquhart also moved intent language to be spread on the House Journal clarifying that unfair competition "includes cyber terrorism" and listing examples such as damaging websites and misleading domain directions.

What this means: The statute, as amended, creates a statutory private cause of action for computer-related unfair competition tied to enumerated acts. The House's changes narrowed and clarified the bill’s language before transmitting it back to the Senate for further consideration.