CALIFORNIA/NEVADA/ARIZONA AUTOMOTIVE WHOLESALERS’ ASSOCIATION SUPPORTS FIGHT FOR PATENT “REPAIR CLAUSE”

Consumer Groups Testify at IP Subcommittee Hearing

SACRAMENTO, February 21, 2008 – Last week, the U.S. House Subcommittee on Courts, the Internet, and Intellectual Property held a hearing addressing patent design. The Consumer Federation of America, Advocates for Highway and Auto Safety and the Center for Auto Safety testified urging Congress to keep prices fair in the automobile replacement parts marketplace. California/Nevada/Arizona Automotive Wholesalers’ Association (CAWA) encourages Congress to maintain a system that for more than 60 years has offered consumers a safe, alternative choice when it comes to auto repair.

The current and rising trend of automaker design patents on collision replacement parts could eliminate the entire alternative replacement parts industry, thus removing competition in the marketplace. Without a permanent legislative solution, a monopoly on replacement parts threatens the entire industry and with it, tens of thousands of American jobs. A “repair clause” would ensure competition in the automobile parts industry, saving consumers $1.2 billion a year.

“CAWA recognizes the critical importance of preserving competition in the automotive aftermarket industry,” said Rodney Pierini, President and CEO of CAWA. “We commend the Consumer Federation of America and its partners in testifying on behalf of consumers, protecting Americans from a monopoly – and higher prices – in the automobile parts industry.”

Founded in 1955, CAWA is a nonprofit trade organization representing automotive jobbers, warehouse distributors, retailers, manufacturers, and manufacturer representatives in the three states it serves. CAWA's mission is to provide communications, education, legislative and regulatory advocacy and group purchasing of services for its members while promoting the automotive aftermarket industry.

For more information about CAWA visit www.cawa.org

“CAWA, We’re In Business To Keep You In Business”