Press Releases
THURSDAY, FEBURARY 5, 2009
For Immediate Release
Quality Parts Coalition Calls for Repeal of Dangerous,
Precedent-Setting ITC Ruling
Coalition Urges Congress to Save Consumer Choice and Competition in Automotive Collision Repair Market
WASHINGTON — As a panel of judges at the U.S. Court of Appeals for the Federal Circuit hears oral argument in the appeal of an International Trade Commission (ITC) ruling that denies consumers access to quality, alternative parts on 2004, 2005, 2006 and 2007 Ford F-150s, the Quality Parts Coalition (QPC) today continues to demonstrate how the 2006 decision will adversely affect American motorists and the automotive aftermarket.
In Dec. 2005, Ford Global Technologies (“Ford”) filed a “Section 337” complaint at the ITC, alleging that certain collision parts manufacturers and distributors had infringed on 14 parts for the Ford F-150. In June 2006, the ITC issued a general exclusion order on seven of those 14 parts, effectively eliminating the use of anything but Ford parts on the Ford F-150. As a result, Americans are at times paying 60 percent more for parts ranging from grilles to bumpers.
All indications are that car companies like Ford may be pursuing a strategy to drive out competitors in the marketplace to secure a monopoly on collision replacement parts. Since 2005, the number of design patents (granted to those who invent a new, original and ornamental design for an article of manufacture) held by the car companies has more than doubled. Design patents now account for roughly 20 to 25 percent of the total U.S. patents awarded to those manufacturers. In May 2008, Ford filed another brief at the ITC, this time against manufacturers and U.S. distributors of automotive collision repair parts for certain exterior repair parts for the 2005 Ford Mustang.
A car parts monopoly would cost consumers billions in added insurance premiums, and possibly force some to delay or even forgo repairs. The Quality Parts Coalition has been working to secure a permanent, legislative solution to prevent car companies from successfully blocking competition in the market.
“Repealing this precedent-setting general exclusion order is more important than ever. Americans, seeing an increase in home foreclosures and in unemployment, are tightening their spending. Unless Congress intervenes, Americans may also see freedom of choice disappear and parts’ prices and insurance premiums soar in the near future,” said Eileen A. Sottile, executive director of the QPC.
In the 110th Congress, Rep. Zoe Lofgren (CA-16) introduced H.R. 5638, a “repair clause” that struck a balance between protecting intellectual property and ensuring free competition by creating a limited design patent exception for collision repair parts. Seven co-sponsors joined Rep. Lofgren in calling on Congress to bring the U.S. in line with a number of nations. The European Union is in the process of adopting a similar design directive.
“The billions in savings provided by the alternative parts industry helps ensure that consumers—the backbone of the economy—can still afford necessities like groceries and healthcare when faced with unexpected collision repair bills. QPC allies will continue to urge lawmakers to voice their support for an automotive ‘repair clause’ and with it, uphold American traditions of choice and competition,” concluded Sottile.
For more information, visit www.qualitypartscoalition.com.
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The Quality Parts Coalition represents the interests of the independent parts industry, repairers, insurers, seniors 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.