Attorney General Cracks Down on Apparel Company Based in China For Pirated Software

SACRAMENTO – California Attorney General Xavier Becerra today announced a default judgement against Ningbo Beyond, an apparel manufacturing company based in China that operates in California. In operating its business, Ningbo Beyond did not pay licensing fees for software, including products manufactured by Adobe, Microsoft, Symantec and others. By not paying software licensing fees, Ningbo Beyond gained a significant cost advantage in the low-margin business of apparel manufacturing, shipment and sales. The judgment awards the State of California $3.2 million in civil penalties and marks the second time the California Attorney General’s Office has secured a legally enforceable judgement against an international company for violations under California’s Unfair Competition Law.

“All businesses in California must compete on a level playing field,” said Attorney General Becerra. “Ningbo Beyond tried to cheat the system by using pirated software to undercut its competition and boost its profits. This judgment should send a strong message to all companies doing business in California: play by the rules. As the state’s chief law enforcement officer, I’m committed to ensuring a thriving, competitive and fair marketplace.”

The judgment also prohibits Ningbo Beyond from engaging directly or indirectly in the unlicensed use of software used in or associated with the design, manufacture, order, sale, shipment or transportation of apparel products that are shipped to persons or companies in California. And third-parties who do business with Ningbo Beyond in California are prohibited from selling, distributing, or receiving Ningbo Beyond’s apparel products and goods in California until Ningbo Beyond submits to the jurisdiction of California’s courts and certifies it is not using unlicensed software.

A copy of the default judgement and memorandum opinion is attached to the online version of this release at http://oag.ca.gov/news.