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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. The quality replacement parts industry contends the Ford patents should be declared invalid due to a variety of factors, including prior public use, prior art or failure to meet the test of non-obviousness. However, on June 6, 2007, the ITC stated it would not review the case and announced a general exclusion order on the infringing parts. After a 60-day Presidential Review period, the United States Trade Representative (USTR) announced that no action would be taken on the case. The exclusion order is now in place. Keystone has announced that it will appeal the underlying decision. The decision in this case could lead to the elimination of the alternative exterior repair parts industry. There is already evidence that the large automobile manufacturers are seeking design patent protection on the overall appearance and component parts of their new vehicles. Because U.S. design patent law provides for 14 years of protection, after which time most automobiles become obsolete, the $2.4 billion independent market would be effectively eliminated. Open Letter to USTR from Keystone Automotive Letters submitted to Congress from four associations representing Consumers: Advocates for Highway and Auto Safety, Consumer Federation of America, Center for Auto Safety, and Public Citizen |
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