Representative Zoe Lofgren Champions Consumers' Rights

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Thu Apr 17, 2008 1:10pm EDT

Quality Parts Coalition Applauds Introduction of Landmark Repair Clause
Legislation

WASHINGTON, April 17 /PRNewswire-USNewswire/ -- 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 supersede 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 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. 

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.

CONTACT: Lee Hudson
800-353-1274
hudson@qualitypartscoalition.com


SOURCE  Quality Parts Coalition

Lee Hudson of Quality Parts Coalition, +1-800-353-1274,
hudson@qualitypartscoalition.com
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