Quality Parts Coalition Applauds Solution to Looming Car Company Parts Monopoly
WASHINGTON, June 26
/PRNewswire-USNewswire/ -- With the summer travel season underway, Representative Zoe Lofgren (D-Calif.) yesterday introduced 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 high-quality, low-cost automotive collision replacement parts. 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).
Millions of Americans travel by car during the Fourth of July holiday, adding to the existing congestion on our interstates and increasing the potential for collisions. As the ongoing economic crisis forces consumers to trim budgets to afford necessities such as healthcare and groceries, now, more than ever, motorists need access to low-cost collision parts to keep down the costs of repairs. 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.
"The rising cost of repair parts will put a severe dent in the pocket books of many working Americans, who depend on their vehicles to take their kids to school, drive to the doctor, and simply get to work," noted Rep. 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."
Competition affords consumer a savings of up to $1.5 billion each year. But in recent years, the 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 affordable alternatives. New 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. For instance, consumers are generally unaware of the total cost of ownership when they purchase a new vehicle.
"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," said Whitehouse, a member of the Senate Judiciary Committee.
The Quality Parts Coalition (QPC) echoes Rep. Lofgren and Senator Whitehouse's support for "repair clause" legislation and the introduction of the "Access to Repair Parts Act." QPC, a diverse roster of consumer advocates, independent parts manufacturers and distributors, auto body shops and insurance companies, 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," said 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 only underscores the continued and compelling need for Congress to act now to preserve competition that has existed for decades. In April 2009, a competitor reached a settlement with Ford Motor Company (Ford), which ended actions at the International Trade Commission on the Ford F-150 and Mustang. The settlement gives the company a temporary exclusive license to distribute alternative Ford parts with the requirement of paying a significant royalty to Ford. The terms of the agreement 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. It is the goal of the Quality Parts Coalition to develop and secure a permanent legislative change to U.S. design patent law to preserve competition and to protect the consumer's right to benefit from quality, lower-cost alternative replacement parts.