WASHINGTON D.C. - Representative Zoe Lofgren (D-Calif.) introduced on June 25 the "Access To Repair Parts Act," H.R. 3059, in the U.S. House of Representatives and Senator Sheldon Whitehouse (D-R.I.) introduced identical legislation in the Senate, S.1368.
The "Access to Repair Parts Act" would guarantee the availability of aftermarket automotive collision replacement parts. The "Access to Repair Parts Act" would amend Title 35, U.S. Code (Patents) so that it would not be an act of design patent infringement to make or distribute alternative repair parts (i.e. bumpers, fenders and hoods) used for the purpose of repairing a vehicle to its original appearance. It is designed to provide motorists with access to aftermarket collision parts to keep down the costs of repairs.
"The rising cost of repair parts will put a severe dent in the pocket books of many working Americans," says Lofgren. "I believe that our patent system should provide an appropriate incentive for industrial designers to innovate. However, the system must be balanced and take into account the legitimate needs of consumers."
In recent years, car companies have obtained an increasing number of design patents on visible crash parts, and patent enforcement actions have attempted to block competitors from producing and distributing less expensive aftermarket alternatives. Research suggests that several characteristics of the market for crash parts give the car companies an unusual ability and incentive to use design patents to raise prices and harm consumers.
"By exempting auto repair parts under the patent laws, this bill will preserve competition in the car parts market and ultimately lead to lower prices for consumers, at a time when every little bit helps," says Whitehouse, a member of the Senate Judiciary Committee.
The Quality Parts Coalition (QPC) agrees with Lofgren and Whitehouse and supports the "repair clause" legislation and the introduction of the "Access to Repair Parts Act." QPC, a group of consumer advocates, independent parts manufacturers and distributors, auto body shops and insurance companies, said it is dedicated to securing a permanent legislative change to U.S. design patent law that allows for a viable alternative auto parts industry and brings the nation in line with a number of countries around the world with similar pro-consumer laws.
"It is simply not fair for consumers to be forced to pay monopolistic prices for needed crash repair parts," says Jack Gillis, director of public affairs, Consumer Federation of America. "For example, Ford charges the same price for a fender as Dell charges for a high-speed computer and flat screen monitor and a Sears two-door, refrigerator/freezer with an icemaker is the same price as an unpainted door skin from Chrysler. The fact is, computers and refrigerators, are less expensive and better today than five years ago for one reason – competition."
A recent legal settlement involving Ford underscores the need for Congress to act now to preserve competition, Gillis said. In April 2009, LKQ Corp. reached a settlement with Ford Motor Co, which ended actions at the International Trade Commission on the Ford F-150 and Mustang. The settlement gives LKQ Corp. a temporary exclusive license to distribute alternative Ford parts with the requirement of paying a significant royalty to Ford. The terms of the agreement are confidential, but it expires in less than two years, at which time Ford may once again attempt to file design patent infringement against alternative parts manufacturers.
"From keeping the costs of repairs reasonable to ensuring that our aftermarket continues to thrive, the adoption of the 'Access to Repair Parts Act' is a win for motorists and hard-working Americans all over the country," said Eileen A. Sottile, executive director of the Quality Parts Coalition. "As a representative of many of these voices, the QPC is focused on advancing this legislation. It is time we stop the car companies in their tracks. It is time we stand up for consumers." The Quality Parts Coalition represents the interests of the independent parts industry, repairers, insurers, consumers and seniors.
Joining Rep. Lofgren in support of the House legislation are original cosponsors Reps. Rick Boucher (D-Va.), Steve Cohen (D-Tenn.), William D. Delahunt (D-Mass.), Sheila Jackson-Lee (D-Texas) and Charles A. Wilson (D-Ohio).
