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House overrides veto on SB 239 to create state unfair business-practices remedy
Summary
The House on April 26, 2004 voted 56–16 to override the governor’s veto of Senate Bill 239, which defines certain unfair business practices related to intellectual property, cyberterrorism, software licensing and hiring and creates civil remedies; supporters said it protects IT jobs, opponents warned of drafting flaws and litigation risk.
The Utah House voted 56–16 on April 26 to override Gov. Olene S. Walker’s veto of Senate Bill 239, a measure that creates a statutory cause of action for certain unfair business practices tied to intellectual property and related harms.
Representative Urquhart, speaking as floor sponsor, summarized the measure as focused on “unfair business practice” defined to include cyberterrorism, infringement of patents/trademarks/trade names, software license violations and predatory hiring practices, and said the bill allows recovery of actual damages, costs and attorney fees, and in some circumstances punitive damages. Urquhart and other proponents argued the law would protect intellectual-property‑based jobs in Utah’s information-technology sector.
Opponents urged caution and cited drafting gaps. Representative Christiansen said the bill “purports to be the codification of unfair competition” but lacks critical elements reflected in Utah case law and earlier court decisions; Representative Cheryl Allen quoted a legal memo concluding the statute conflicts with current law and needs reconciliation with case law before it can confidently be called an unfair-competition act. Other members warned the bill, as drafted, could spur expensive litigation and unintended consequences for businesses.
Proponents countered that passing the statute would send a signal that Utah protects IP and helps attract high‑paying technology jobs. Representative Urquhart urged members to consider the bill’s potential job and business benefits.
After extended floor debate capturing both business-protection and legal‑clarity concerns, the House announced the override vote as 56 yes and 16 no; the veto on SB 239 was overridden in the House.
What’s next: The override restores the legislature’s version of SB 239 and, unless altered by future sessions or challenged in court, moves the statutory language into effect per Utah law.
