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Quality Parts Coalition Asking Congress to Revisit Design Patent Issue
Jason Stahl
6/29/2011

The Quality Parts Coalition (QPC), a consortium of independent parts and insurance companies "committed to preserving and protecting the benefits of a competitive marketplace when repairing damaged vehicles," is currently working with Congress to introduce two new bills that would address car manufacturer design patents.

"We believe this is the right time for the legislation to move given the current economic conditions and the fact that consumers need to be able to afford to fix their cars so they can get to work," said Eileen Sottile, executive director of the QPC. "We think it makes a lot of sense for Congress to take this issue up and find a permanent solution to the patent challenge."

In 2005, Ford attempted to enforce 14-year design patents on seven collision replacement parts for the 2004 Ford F-150 by filing a complaint with the International Trade Commission (ITC). In 2006, a judge ruled that seven of the 10 design patents were enforceable, but agreed with Keystone Automotive Industries and other companies that had vigorously contested the case that three patents were invalid due to Ford's prior public use of the designs. The ITC then issued a cease and desist order to stop the importation of these parts into the U.S.

In 2008, Ford filed another design patent enforcement complaint with the ITC, this time for replacement parts on the 2005 Ford Mustang.

In 2009, the Access to Repair Parts Act (H.R. 3059/S. 1368) was introduced that would favor the aftermarket and create an exception from infringement of design patents for certain component parts used to repair another article of manufacture. The clause, which was tagged to an intellectual property bill in the Senate, did not pass.

A settlement was reached on April 1, 2009 where LKQ, as the only distributor of non-OEM aftermarket copies of Ford collision parts protected by design patents, would pay Ford a royalty for each such part sold during the agreement's term, which extends through Sept. 30, 2011.

"We have noticed that the car companies are continuing to patent more and more parts," said Sottile. "This issue isn't going away and it's something Congress needs to take note of. Consumers who have the unfortunate circumstance of being in an accident need competition available and parts readily accessible. If this issue is not addressed, then this Congress will continue to see more total loss vehicles and escalation of repair costs. What we are seeing is consumers opting not to fix their cars, which hurts everyone."

Sottile said the QPC is cautiously optimistic that the bills will be introduced.

"We feel there is a great deal of interest on the Hill and that staffers and members of Congress understand that consumers need to be protected against a monopoly and the car companies obtaining patents on all these cosmetic replacement parts," she said.

The QPC has also been working on doing a better job of communicating its message directly to consumers.

"We've been putting great emphasis on social media by enhancing our Facebook and Twitter presences," said Sottile. "We want consumers to know that having one source for parts will force them to go back to the dealer over and over and pay up to 50 percent more for a part just to fix a car."

Sottile also says the QPC is trying to reinforce to collision repair facilities the positive aspects of aftermarket crash parts.

"I think one of the greatest benefits of aftermarket parts is the flexible return policies and the limited lifetime warranties that are better than the car company warranties," she said. "Also, that LKQ pays to not only replace a part but, on a case-by-case basis, will reimburse for any labor if there happens to be a problem with the part. But we're still only talking about a 2 percent defective rate, meaning that the part didn't fit exactly the way it should." 


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