The Intellectual Property Owners (IPO) Association sent a letter to
U.S. Patent and Trademark Office director John Dudas indicating that
they did not support new legislation that would create an exemption for
design patent
infringement liability for component parts (also known as a "repair
clause") used to repair automobiles and other articles of manufacture
(H.R. 5638).

IPO based their lack of support on what they say are four flaws in the
legislation: the undermining of the policy rationale for IP rights; the
targeting of only replacement parts; the removal of existing rights;
and the creation of an uneven playing field.

Supported by AAIA and introduced by Rep. Zoe Lofgren, D-Calif., S 5638
would leave in place patent protection for the first sale of the
vehicle, but would permit the production by aftermarket companies of
replacement cosmetic parts that needed to be the same as the OE part it
was replacing. Similar legislation already has been enacted in several
countries, such as Australia, and has gained approval in the European
Union (EU) Parliament, with action expected soon from the EU Council of
Ministers. AAIA has told Congress that failure to enact this
legislation will mean that car companies will obtain a monopoly in the
sale of replacement collision repair market, thus raising repair costs
for car owners.

For more information on the repair clause and the legislation, visit www.qualitypartscoalition.com.