Ford Mustang Joins F-150 in the Patent Corral
WASHINGTON, May 7 /PRNewswire-USNewswire/ -- On May 2, 2008, Ford Global Technologies filed a Section 337 complaint at the International Trade Commission (ITC) against manufacturers and U.S. distributors of automotive collision repair parts alleging infringement of design patents for certain exterior repair parts for the 2005 Ford Mustang. This follows a 2005 ITC complaint by Ford Global Technologies -- currently under appeal -- that removes competition when any of the nearly 2 million Ford F-150 drivers on America's roads look to replace seven collision parts on their 2004, 2005, 2006 and 2007 F-150s.
Competition in the auto repair marketplace saves American consumers more than $1.5 billion per year. When Congress said 'no' to the auto industry's attempt in the 1990s to enact legislation providing copyright protection for replacement parts because of the enormous cost a monopoly would impose on consumers, the auto companies came up with another strategy to monopolize the collision repair parts marketplace and put a larger dent in consumers' pocketbooks.
In recent testimony before Congress provided by consumer groups including the Consumer Federation of America, Public Citizen, Consumers' Union, the Center for Auto Safety and Advocates for Highway and Auto Safety, Jack Gillis of the Consumer Federation stated, "Our concern today is that the car companies are now using design patents, not for the important and legitimate protection of the overall design of their vehicles, but to prevent competition when it comes to getting the parts we need to repair our vehicles. This lack of competition will seriously harm consumers who will end up paying excessive and exorbitant prices. This is money better spent on health care, food, clothing and education instead of minor repairs at major costs."
The car company replacement collision parts most consumers typically need to repair their vehicles after a crash -- bumpers, fenders, tail-lights and grilles -- cost an average of 8 percent less when a quality alternative replacement part is available, and those alternative parts are approximately 25 percent to 50 percent less than equivalent parts manufactured by the big car companies.
However, as the number of design patents obtained by the big car companies for crash parts skyrockets, so will the price of those parts if they continue to enforce their patents against alternative suppliers of crash parts. Further, the insurance industry estimates the rise in costs and "total losses" could require $1 billion or more each year to be passed on to consumers in the form of higher insurance premiums.
"We have long believed the automotive companies have a business plan to utilize the ITC forum as a means to eliminate competition in the aftermarket, thus completely monopolizing the replacement collision parts market," said Eileen A. Sottile, executive director of the Quality Parts Coalition (QPC). "The consumers, national and regional automotive groups and companies, repairers, insurance industry representatives and seniors who have rallied under the banner of the Quality Parts Coalition refuse to sit idly by while Ford and other automakers seek to impose a collision repair monopoly on the backs of American consumers."
Responding to the case made in recent testimony by the Consumer Federation of America, Public Citizen, Consumers' Union, the Center for Auto Safety and Advocates for Highway and Auto Safety that keeping prices fair and the automotive collision parts marketplace free by adding a "repair clause" to United States design patent law is critical to preserving consumer choice, Rep. Zoe Lofgren (CA-16) has introduced H.R. 5638. This legislation would amend Title 35, U.S. Code (Patents) to provide design patent exemption for alternative repair parts used for the purpose of repairing a vehicle to its original appearance. Co-sponsors of H.R. 5638 include Representatives Rick Boucher (VA-9), Sheila Jackson-Lee (TX-18) and Charles A. Wilson (OH-6).
For more information, visit www.qualitypartscoalition.com.
The Quality Parts Coalition represents the interests of the independent parts industry, the repair industry, the insurance industry and consumers. 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.