Keep auto parts affordable

Seeking a Legislative Change: “Repair Clause” Chronology of Events

  • July 24, 2009 – Representative G.K. Butterfield (D-N.C.) joined Representative Zoe Lofgren (D-Calif.) in support of the “Access To Repair Parts Act,” H.R. 3059.
  • June 25, 2009 – Representative Zoe Lofgren (D-Calif.) and Senator Sheldon Whitehouse (D-R.I.) introduce the “Access to Repair Parts Act.” The identical bills, S.1368 and H.R. 3059, 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). The Quality Parts Coalition, its members and “repair clause” supporters applauded the introduction.
  • June 2009 — General Motors files for Chapter 11 bankruptcy protection. Fiat takes a stake and management control of Chrysler. Supply chains continue to diminish and dealerships are being forced to shutter their doors. The need for quality, alternative parts is greater than ever to ensure that auto dealers and independent repairers continue to have access to the parts their customers need.
  • April 2009 — Ford reaches a settlement with one of its aftermarket competitors, granting it a temporary exclusive license to distribute aftermarket Ford parts with the requirement of paying a significant royalty to Ford. Much of the economic benefit for consumers will be lost due to the cost of the royalty and the limitation of the license to a single aftermarket part distributor. Precise terms of the settlement are confidential and only bind Ford until September 30, 2011. This does nothing to prevent the car company from again filing its design patent enforcement litigation after the contract expires. In short, this only applies to Ford design patents, and is a temporary solution.
  • March/April 2009 — The ITC begins hearing the case alleging design patent infringement on crash parts for the 2005 Ford Mustang.
  • February 2009 — The U.S. Court of Appeals for the Federal Circuit hears oral argument in the appeal of an ITC ruling that enforces design patents on 2004, 2005, 2006 and 2007 Ford F-150.
  • September 2008 —The Egyptian Goddess Case, which was decided on September 22, 2008 by the entire Federal Circuit (12 judges), revisited many of the fundamental aspects of design patents, including points of novelty.
  • June 2008 — Spurred by introduction of H.R. 5638, the United States Patent and Trademark Office (USPTO) convenes a town hall meeting to hear concerns of parties interested in issues related to the protection of industrial designs. QPC and a number of members and allies, including the American Insurance Association, the American Antitrust Institute, the Automotive Aftermarket Industry Association, and consumers provide oral and/or written testimony in support of a repair clause.
  • May 2008 — Ford files another case at the ITC claiming infringement on parts for the Mustang
  • May 2008 — The American Antitrust Institute submits a letter in support of H.R. 5638 and commits to conducting a study on the antitrust implications of the collision repair aftermarket.
  • March 2008 — To combat rising prices and encourage competition, Rep. Zoe Lofgren (D-CA) introduces H.R. 5638, a bill that would amend federal patent law to provide an exception from design patent infringement for alternative repair parts used for the purpose of repairing a vehicle to its original appearance. The legislation allows the car companies to obtain patents and enforce them in the primary market while eliminating a scenario in the secondary market in which American consumers would be forced to pay a monopoly price on a part such as a mirror, headlamp, bumper or tail light whenever it has been damaged in an accident and needs repair. Cosponsors included: Representatives Rick Boucher (VA-9), Charles A. Wilson (OH-6), Sheila Jackson-Lee (TX-18), Eddie Bernice Johnson (TX-30), Steve Cohen (TN-9), William D. Delahunt (MA-10) and G.K. Butterfield (NC-1).
  • February 2008 — Consumer groups testify before the before the U.S. House Subcommittee on Courts, the Internet, and Intellectual Property asking for a repair clause in the patent law.
  • December 2007 — On December 12, 2007, the European Parliament approved a similar law which would apply to the entire European Union. Ratification by the Council of Ministers is pending.
  • Summer 2007 — To preserve competition and protect the consumer’s right to benefit from quality, lower-cost alternative collision repair parts, the industry builds a coalition to seek a permanent change to U.S. patent law, creating the Quality Parts Coalition (QPC). The coalition is made up of members of the automotive aftermarket industry, the insurance industry and consumers and senior groups concerned about the ways in which design patents on automotive collision repair parts are contributing to increased auto repair costs and higher insurance costs.
  • August 2007 — The International Trade Commission issues a general exclusion order against the importation of seven of the fourteen named parts for the F-150, removing competition when any of the nearly 2 million Ford F-150 drivers on America’s roads look to replace those collision parts on their 2004, 2005, 2006 and 2007 F-150s. The case was appealed.
  • 2006 — The industry researches other countries and their approach to patent problem and discovers that nine European countries (Italy, Belgium, Hungary, Ireland, Latvia, the Netherlands, Poland, Spain, and the UK) and Australia have enacted laws which specify that the making and use of a matching exterior auto part to repair an automobile is not an act of infringement.
  • December 2005 — Ford files a case before the International Trade Commission claiming patent infringement on 14 parts for the 2004 F-150 (simple repair parts including hood, fender, lights, bumper, grille, mirrors).