UNITED STATES SENATE
FOR IMMEDIATE RELEASE
February 25, 2015
Media Contacts:
Matt Whitlock (Hatch) 202-224-4511
Seth Larson (Whitehouse) 202-228-6291
Ben Carnes (Issa) 202-225-3906
ZJ Hull (Lofgren) (202) 225-3072
JOINT RELEASE – Hatch, Whitehouse, Issa, Lofgren Introduce Bipartisan, Bicameral PARTS Act
Washington, D.C.— U.S. Senators Orrin Hatch, R-Utah, member and former chairman of the Senate Judiciary Committee, along with fellow Senate Judiciary Committee member Sheldon Whitehouse, D-RI, and House Judiciary Committee members Darrell Issa, R-CA, and Zoe Lofgren, D-CA, introduced the Promoting Automotive Repair, Trade and Sales Act of 2015 (PARTS), a bipartisan, bicameral bill, which would expand consumer choice for automobile collision repair parts, cut costs paid by insurers and drivers, and ensure competition in the automobile repair parts market.
Sen. Hatch said, “Especially in today’s tight economy, there is no reason why Americans should have to pay unreasonably high prices just to repair their cars. The PARTS Act encourages competition in the marketplace by providing consumers with a choice of affordable, quality alternatives to repair their cars.”
“Having to replace a car part is frustrating enough; drivers shouldn’t have to pay artificially high prices set by car manufacturers,” Sen. Whitehouse said. “This bill will preserve competition in the car-parts market and ultimately allow consumers to get safe replacement parts at lower prices.”
“The decision to purchase an automobile is one of the biggest investments a family makes,” Rep. Issa said. “With the average sticker price of a new car now exceeding $30,000 and repair costs continuing to rise, hardworking American families deserve access to as many repair part options as possible. The PARTS Act will not only increase consumer choice therefore reducing aftermarket costs but encourage innovation and competition among other aftermarket parts manufacturers.”
“Millions of Americans depend on their cars to be reliable and affordable so they can get their kids to school, pick up groceries for their family, and drive to work every day,” Rep. Lofgren said. “By bringing real competition and innovation to the auto parts market, we can ensure consumers get the best value for their dollar when they need to shop for safe, high-quality, and reasonably priced replacement parts to keep their cars running.”
Background
The PARTS Act narrowly amends U.S. design patent law to reduce, from 14 years to 30 months (or 2.5 years), the period of time during which it would be an act of infringement—of a car company’s design patent on an external collision repair part (e.g., fender, quarter panel, door)—for an alternative supplier to sell an aftermarket version of such a part for use in repairing a consumer’s car.
However, during that 30-month period it would not be an act of infringement for alternative suppliers to make, test, research and develop such parts on a not-for-sale basis. The current 14-year design patent term prevents aftermarket manufacturers from making or selling external collision repair parts, driving up repair costs by limiting consumer choice, crowding out competition, and leading to higher insurance rates and fees.
The legislation would do nothing to deter car companies from obtaining design patents on their collision parts and enforcing them—up to 14 years—against other car companies.
*Attached you will find the legislative text of the bill, which is also available on our website.
