Know the Facts

Section 337 Case

In December 2005, Ford Global technologies filed a Section 337 case against Keystone Automotive Industries, Inc. and five other manufacturers or distributors alleging the importation of automotive part products infringing 14 design patents held by Ford. During the proceedings, four of the design patents were held invalid. On December 4, 2006, the Administrative Law Judge (ALJ) in the case issued its Final Initial Determination finding three additional patents invalid. However, at the same time, the court held that seven of the design patents were valid and infringed.

By enforcing design patents, Ford temporarily eliminated all competition for seven F-150 collision repair parts. This allowed Ford to drive up the prices of most of these parts, to the detriment of the consumer. In May 2008, Ford initiated another design patent enforcement action at the ITC against its aftermarket competitors, this time for parts on the 2005 Mustang.

As a result of a court settlement in April 2009 which ended legal action on the Ford F-150 and Mustang, today, the millions of Ford F-150 and Mustang owners in the U.S. have limited alternative options for quality replacement collision parts. The settlement, which awarded one aftermarket competitor with a temporary, exclusive license to distribute aftermarket Ford parts, further hurts the consumer, who may shoulder the added cost of the royalty in the increased price of parts. Car companies like Ford are strategizing to enforce these patents on collision repair parts of many new car makes and models to further monopolize the automotive collision repair parts market.