BISMARCK - North Dakota should look at making itself an "island" by offering businesses a safe haven for protecting their intellectual property, a Fargo legislator said Wednesday.
Just as South Dakota became a magnet for credit card companies in the 1980s, North Dakota could change laws to attract businesses concerned about their intellectual property rights, House Majority Leader Rick Berg, R-Fargo, said during a legislative committee meeting.
It has "a huge potential to be a home run for North Dakota," Berg told the interim Economic Development Committee.
"I think intellectual property is the way to go. North Dakota could be an island. We could create the same kind of impact South Dakota did when they got rid of their usury laws."
Another legislator said the discussion seemed to lean toward scrapping some of the state's open records laws. North Dakota has a liberal open records law; any government record is an open record unless the Legislature specifically closes it.
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Wednesday's discussion came when Deputy Commerce Commissioner Shane Goettle briefed legislators on a proposed study of the state's laws on intellectual property rights. Commerce is doing the study in consultation with the North Dakota University System.
"The state laws that have raised concerns with these universities and the businesses they partner with are North Dakota's open records laws," Goettle said. "They are concerned with the universities' ability to keep confidential information that, if made public, competition would be able to leverage to their advantage."
Rep. Pam Gulleson, D-Rutland, asked Goettle to name one company with whom a deal was spoiled because of the state's open records laws. He said he couldn't.
"All I can say is the issue comes up," he said. "Businesses say, 'how much of what we say to you is going to go public?' "
Gulleson said it seems from the expansion of companies into the state that the laws are not a barrier.
"These (universities) are taxpayer-funded institutions," she said.
Jack McDonald, a lawyer for the state's newspapers and broadcast stations, said there is already plenty of protection in state law for companies dealing with the state.
Berg said after the meeting that his statements about intellectual property during Goettle's presentation were not an attack on the open records laws, noting that he sponsored the last set of changes in the open meetings laws in 1997. News media companies and state officials cooperated on the rewrite.
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"I personally don't think the open records laws is a barrier (to businesses)," Berg said
He said other changes in law could make the state a haven for intellectual property rights.
"If they know North Dakota laws would prevent people from stealing their ideas and concepts, that's the kind of atmosphere we want," Berg said.
Readers can reach Forum reporter Janell Cole at (701) 224-0830
