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WASHINGTON, D.C. — Nationwide Mutual Insurance Company joined the Quality Parts Coalition (QPC) to oppose efforts by auto manufacturers to patent replacement collision parts.
“Now more than ever, consumers are demanding cost-effective, safe, and high quality parts to repair their automobiles after a collision,” says Terry Fortner, Nationwide vice president of material damage claims. “Nationwide is proud to join QPC to advocate for customer choice. Together, we will work to educate lawmakers about the drawbacks of limiting customer choice on collision repair parts and we are committed to advancing this pro-consumer legislation in the 111th Congress.”
The QPC said Ford and other automakers are patenting their designs on automotive parts to eliminate aftermarket parts competition and secure a monopoly on collision replacement parts.
The QPC is seeking a permanent legislative change to U.S. design patent law. The QPC said it represents the independent parts industry, repairers, insurers and consumers.
For more than 60 years, the automotive aftermarket has saved consumers an estimated $1.5 billion a year, with quality alternative parts costing at times 26 percent to 50 percent less than those manufactured by the car companies, according to QPC.
But since Ford successfully eliminated competition on seven replacement parts for its F-150 at the International Trade Commission in 2005, the number of design patents held by the car companies has more than doubled, according to QPC. Design patents now account for roughly 20 to 25 percent of the total U.S. patents awarded to those manufacturers.
Following Ford’s case at the ITC, the nation’s more than 2 million Ford F-150 owners were left without alternative options for several replacement collision parts for their 2004-2007 pickups, according to QPC. Ford increased some parts’ prices by nearly 60 percent, QPC charged. Where competition still exists on its parts, however, Ford has lowered its prices. In May 2008, Ford filed another complaint at the ITC, this time on collision replacement parts for America’s favorite sports car, the Mustang.
In the 110th Congress, Rep. Zoe Lofgren (Calif.-16) introduced H.R. 5638, a “repair clause” that struck a balance between protecting intellectual property and ensuring free competition by creating a limited design patent exception for collision repair parts. Seven co-sponsors joined Rep. Lofgren in calling on Congress to bring the United States in line with other nations that ascribe to free competition in the collision repair parts market. QPC said its members and supporters are dedicated to advancing similar legislation in the 111th Congress.
“All indications are that Ford and others are strategizing to enforce restrictive 14-year design patents on collision repair parts of many other new car makes and models to further monopolize the automotive collision repair parts market,” says Eileen A. Sottile, executive director of QPC. “We are thrilled to welcome Nationwide as the newest member in our growing effort to combat these predatory strategies of the car companies and guarantee consumer choice and competition in the automotive collision repair parts market.”
