developed product that is similar to an existing product is this a violation of AL state or federal intellectual property laws

Competition is encouraged but it must be fair and free from infringement.

Without more information regarding the specific product - I will say the following:

1) Selling a similar product can violate copyright, trademark, patent and unfair competition laws.
2) Copyright protects expression and ideas reduced to a tangible medium - such as a recording, writing or piece of artwork. If your product is strikingly similar to the one sold on the internet - for instance - a t-shirt design that is almost identical and incorporates all major parts of the original - you may be liable for copyright infringement.
3) Trademark law protects the goodwill and reputation of a particular mark or product. A copyrighted work may also be protected under trademark laws. Sometimes, the very shape or color of a product may be trademarked under trade dress protection.
4) If the product you want to imitate is something novel and useful - it may have a patent protecting it.
5) Unfair competition laws, specifically section 43(a) of the Lanham act protect businesses against false designation of origin. (This also relates to trademark protection) The bottom line - if you are going to pass off a similar product as your own you better make sure that it is significantly different to the extent that your customers won't think it came from the online business.

There are many other legal aspects to consider and the above is an extremely simplistic overview of just some of the protections that business owners enjoy under the broad umbrella of intellectual property law. If you are serious about your business venture and are concerned about being sued for infringment - you should contact an intellectual property attorney in your area and discuss the specifics of your proposed business with him. Copyright infringement can be extremely costly and is not something to take lightly.

James provided an excellent summary of the various principles that would be applicable.

There isn't much to add, except to comment that copyright is unlikely to be applicable to a "product" but rather to text or graphics accompanying a product (such as packaging or an instruction manual). If the product is protected by an issued U.S. patent, it would be findable by a search of issued patents, which can be done without charge via the U.S. Patent and Trademark Office website or via Google Patents, for example. The thing to look for is the CLAIMS of the patent, and to remember that if ANY valid claim of a patent is infringed, then the patent is infringed. If you are going into business and marketing a product, it would be opportune to consult a patent attorney to advise on such issues.

The answer you must find is whether the other product is protected by a patent.
The large majority of products are not protected, to encourage competition. Very few companies actually protect their products with a patent, as they are similar but not sufficiently novel to qualify for a patent.
If the product is very similar in design you need to be concerned with copyright infringement, but that must be determined by analyzing both products.
Both Copyright and Patent are Federal issues that do not have, or should not have, state interference.

Unless you copied your competitor's product, you would most likely not need to worry about a copyright action.

If your product isn't marketed in a way that it looks like your competitor is selling the product, then you wouldn't need to worry about trademark issues. (for example, if your competitor's company name is Acme, and they market the product in red and yellow boxes and your company's name is Acmy, and you market your product in red and yellow boxes, you might have a trademark issue).

Finally, as mentioned above, find out if your competitor has a patent. You can go to www.uspto.gov, and click "search patents." Look for patents with an "Assignee Name" that matches your competitor. If they do have a patent, it might be a good idea to contact a patent attorney and get a freedom to operate opinion.

It might also be a good idea to contact an intellectual property attorney if you feel you might have any other IP issues (copyright or trademark).

**This post does not constitute legal advice, nor does it create any attorney-client relationship between Sadiq Ansari and any other individual or entity.**