Hearing of the Intellectual Property Subcommittee of the House Judiciary Committee - Opening Statement of Rep. Darrell Issa, Hearing on the Promoting Automotive Repair Trade and Sales (PARTS) Act

Hearing

The House Judiciary Intellectual Property Subcommittee today heard testimony from auto industry members, aftermarket automobile repair experts, and consumer groups regarding the Promoting Automotive Repair Trade and Sales (PARTS) Act authored by Rep. Darrell Issa (R-CA) and Rep. Zoe Lofgren (D-CA). The bill, H.R. 3889, will expand consumer choices, cut costs paid by insurers and drivers and ensure competition in the automobile component replacement parts market.

"Competition is the hallmark of our free market system," Issa said. "For decades Americans have been used to having choice when it comes to the component parts that they use to repair their vehicles after an automobile accident. My bill ensures that this choice will remain intact."

The bill will set a two and a half year boundary on the exclusivity period for automotive design patents related to so-called alternatively supplied parts and equipment. During this patent protection period, manufacturers of these parts could conduct testing, research and development on a not-for-sale basis without infringing on the patents of the original manufacturer. Auto manufacturers and original parts suppliers currently hold a 14-year exclusivity period for collision repair parts, thereby limiting consumer choices and competition.

"The PARTS Act is intended only to deal with auto collision repair parts like fenders, side mirrors, door panels and bumpers. In recent years, auto companies have been increasingly seeking design patents on these parts which creates a 14 year window of exclusivity. The PARTS Act does not deal with interior parts, the engine, transmission or undercarriage--parts covered by utility patents," Rep. Issa said. "This difference is important because utility patents are generally what we associate with the invention or discovery of a new and useful process or machine. Design patents, on the other hand, are generally granted to those who invent a new, original and ornamental design for an item--the underlying invention is not new, only its appearance," Issa added.

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