Representative Zoe Lofgren Champions Consumers’ Rights

Quality Parts Coalition Applauds Introduction of Landmark Repair Clause Legislation

WASHINGTON — Responding to the case made in recent testimony by the Consumer Federation of America, Public Citizen, Consumers’ Union, the Center for Auto Safety and Advocates for Highway and Auto Safety that keeping prices fair and the automotive collision parts marketplace free by adding a “repair clause” to United States design patent law is critical to preserving consumer choice, Rep. Zoe Lofgren (CA-16) has introduced H.R. 5638. This legislation would amend Title 35, U.S. Code (Patents) to provide design patent exemption for alternative repair parts used for the purpose of repairing a vehicle to its original appearance.

Co-sponsors of H.R. 5638 include Representatives Rick Boucher (VA-9) and Charles A. Wilson (OH-6).

The bill is introduced with strong support from a growing list of national and regional automotive groups, repair shops, insurance industry representatives and seniors under the banner of the Quality Parts Coalition. For decades, companies have offered high-quality alternative replacement parts to compete with parts produced by original equipment manufacturers (OEM). This competition represents consumer savings of up to $1.2 billion each year—direct competition between an automaker’s part and a high quality alternative part guarantees that the cost of the quality alternative part is considerably less; indirectly, the existence of competition in the marketplace ensures that the OEM part is more readily available at a lower cost than parts without competition.

“The rising cost of OEM parts will put a severe dent in the pocket books of many working Americans, who depend on their vehicles to take their kids to school, drive to the doctor, and simply get to work,” noted Rep. Lofgren. “I believe that our patent system should provide an appropriate incentive for industrial designers to innovate. However, the system must be balanced and take into account the legitimate needs of consumers.”

For the repair clause solution, Congress has looked to the European model of the repair clause, which provides for a narrow, practical exception to design law while upholding a car company’s right to prevent competing car companies from using its patented part designs. Approved by the European Parliament last December and expected to be ratified by the Council of Ministers in the first half of 2008, this legislation grants consumers the flexibility to choose while maintaining the car companies’ right to patent.

“H.R. 5638 preserves the tradition of a free marketplace and maintains that car companies have a right to patent the overall design of a vehicle while ensuring that car companies design patent rights do not supercede consumers’ rights to high-quality, low-cost alternative parts,” said Eileen A. Sottile, executive director of the Quality Parts Coalition. “The Quality Parts Coalition and consumers applaud Representative Lofgren for taking such a strong leadership position on this critical issue.”

H.R. 5638 was referred to the Committee on the Judiciary after being introduced by Representative Lofgren on March 14, 2008. To read about the bill, visit Representative Lofgren’s Web site at http://lofgren.house.gov/.

For more information, visit www.qualitypartscoalition.com.

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The Quality Parts Coalition represents the interests of the independent parts industry, the repair industry, the insurance industry 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.