Alliance of State Automotive Aftermarket Associations to Congress: Protect America’s Consumers

H.R. 5638 Strengthens Fight against Big Automakers’ Monopoly on Aftermarket Collision Parts

WASHINGTON - The Alliance of State Automotive Aftermarket Associations (ASAAA) today joined a growing force of consumer advocates and national and regional automotive groups, repair shops, insurance industry representatives and seniors under the banner of the Quality Parts Coalition in support of H.R. 5638. This legislation will save consumers nearly $1.2 billion each year by preserving competition and consumer choice in the collision replacement parts industry.

Introduced by Rep. Zoe Lofgren (CA-16), H.R. 5638 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. H.R. 5638 is a win for consumers across the nation and for the American aftermarket industry, which in 2007 employed 4.5 million citizens and represented annual sales in U.S. of approximately $260 billion.

The availability of quality replacement parts in the aftermarket industry provides a tremendous benefit to American consumers—these parts are typically 26 to 50 percent less expensive than those issued by manufacturers. However, during the past five years, the number of design patents awarded to the major automobile manufacturers has dramatically increased, growing to about 20 to 25 percent of the total U.S. patents awarded to those manufacturers. Elimination of this competition through the enforcement of design patents on specific replacement collision parts will increase the price of items Americans need even after the most minor of fender-benders.

“A ruling by the International Trade Commission has effectively eliminated quality replacement parts for the nearly 2 million owners of Ford F-150s in the U.S., illustrating the looming threat of an OEM monopoly,” said Randal Ward, ASAAA president. “Unless Congress joins Representative Lofgren and H.R. 5638 co-sponsors Representatives Rick Boucher and Charlie Wilson in preserving more than 50 years of competition, automaker design patent cases could eliminate the entire alternative replacement parts industry.”

H.R. 5638 will ensure the U.S. joins several European countries, Australia and the U.K. in ascribing to free competition in the replacement automotive parts market. This type of permanent legislative change to design patent law recognizes that misuse of design patents in the automotive parts and service industry can be counter-productive for the economy.

Established in 1953 to bring together the state association executives to network and address industry issues facing by the aftermarket parts industry, the ASAAA works in affiliation with most every national automotive trade association to best represent its members before industry, media and the government.

“We see the outcome of this struggle as vital to the future of our industry and urge members of Congress to co-sponsor H.R. 5638,” continued Ward.

For more information, visit www.asaaa.com.

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The Alliance of State Automotive Aftermarket Associations is comprised of 18 regional and state associations representing the automotive aftermarket. While most memberships are predominantly independent parts distributors, many of the associations represent all aspects the automotive industry including automotive service and repair.