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Auto Parts Patents Will Raise Repair Costs
The Kiplinger Letter ^ | 29 Feb 2008 | Jim Ostroff

Posted on 03/03/2008 8:47:13 AM PST by BGHater

With automakers patenting more parts to enhance dealers' service and repair revenues, the knockoff business is taking a big hit.

The patenting of more run-of-the-mill auto part designs is roiling small body shops, many of which make their living by fixing cars with knockoffs of original equipment parts such as grilles, hoods, lights, mirrors, side panels and fenders. Such pieces are anywhere from 10% to 50% cheaper than the real McCoys, but increasingly, the law forbids their use.

Automakers have long sought patents on certain extra-stylish ornamentation to prevent other automakers from cribbing the design for their vehicles.

But the trickle of patent applications has become a torrent in recent years as automakers seek to boost their bottom lines by patenting more parts, thus bolstering their auto repair and parts replacement businesses. Ford, for example, has patented seven parts on its popular F-150 pickup truck, including lighted mirrors and the front grille. Honda has been the most aggressive, receiving about 110 design patents last year, followed by 75 for Ford and 60 for Toyota.

As the restrictions on replacement parts grow, it's a good bet that automakers will increase their share of the $16-billion parts replacement business in the U.S. Large independent repair shops that contract with car dealers or automakers and can get volume discounts on patented parts will also benefit.

However, small shops -- and consumers -- increasingly will get squeezed. Small collision repair businesses will have no choice but to pay full cost for the parts and pass along those higher prices to their customers. People paying for their own repairs out of pocket will feel the pain first.

Parts makers can't sidestep the patent protections, either, by making a hood or door panel that looks similar to the original. "The dilemma is that most states' laws dictate that repair shops use parts that look exactly the same as the original and be of the same quality and fit," says Eileen Sottile, executive director of the Quality Parts Coalition, a trade group.

Over time, the design patent avalanche is sure to dent business for small shops. Moreover, as overall repair costs rise, insurers will tag more banged-up vehicles as total losses, reducing repair work. Insurance companies also will increase auto insurance premiums to cover their added costs.

Look for the auto parts industry to step up a push to persuade Congress to pass a law letting independent parts manufacturers sell replacement parts to repair shops. Automakers would retain the right to sue competitors that copy a part design for their vehicles. The prospects for such legislation would increase with Democrats strengthening their hold on the House and the Senate, as we expect.


TOPICS: Business/Economy; Editorial
KEYWORDS: auto; costs; patents; repairs
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1 posted on 03/03/2008 8:47:14 AM PST by BGHater
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To: BGHater

Every company is looking for any thing or way to nickle and dime us to death.


2 posted on 03/03/2008 8:53:03 AM PST by razorback-bert (Eco-wackos make love by candlelight, it is the only light they have.)
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To: BGHater

More and more, when you go to the Autozone, etc, “That’s a Dealer” part.” comes up. The days of old shade tree mechanics are nearly all gone...........


3 posted on 03/03/2008 8:55:53 AM PST by Red Badger ( We don't have science, but we do have consensus.......)
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To: razorback-bert
Quality with integrity ended with the late 80's early 90's production.

I have a 93' Dodge Dynasty LE that came with all whistles & bells.

That was the last "big Americana car".

Then the Germans took over & said "'Vat's a matter vit you, you can't be making good cars that last forever!"

I'll keep it forever just to be an example, besides it's big, it's comfy, and cheap to operate.

4 posted on 03/03/2008 9:01:26 AM PST by norraad ("What light!">Blues Brothers)
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To: BGHater

One more tool to keep the Chinese out of the business...


5 posted on 03/03/2008 9:05:31 AM PST by glorgau
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To: BGHater
I don’t know the intricacies of this, but on the surface, if you designed it, I don’t see a problem with patenting it. I may cry and haw about it but think of the designer who gets cut at the knees by someone stealing a design.
6 posted on 03/03/2008 9:09:08 AM PST by endthematrix (He was shouting 'Allah!' but I didn't hear that. It just sounded like a lot of crap to me.)
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To: Red Badger
Re Shade tree mechanic

Oh you can still do it. It may take a few extra hours to get that darn black shroud over the hood off, though!

7 posted on 03/03/2008 9:13:07 AM PST by endthematrix (He was shouting 'Allah!' but I didn't hear that. It just sounded like a lot of crap to me.)
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To: BGHater; wolfpat

Turboencabulator prices are through the roof.


8 posted on 03/03/2008 9:20:25 AM PST by Rb ver. 2.0 (Global warming is the new Marxism.)
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To: BGHater

This will hit the consumer on insurance rates also because repair costs for them will be higher.


9 posted on 03/03/2008 9:30:01 AM PST by RatRipper
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To: BGHater

Locking up patents encourages planned obsolescence. Eventually it will be cheaper to buy a new car then fix it. Parts patents should open up after say 10 years without option for renewal. Heck even 20 years might be okay, I’ve got a 1984 Honda Accord that still shows no signs of stopping.


10 posted on 03/03/2008 9:30:23 AM PST by Domandred (McCain's 'R' is a typo that has never been corrected)
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To: Domandred

BUMP!


11 posted on 03/03/2008 9:43:02 AM PST by Publius6961 (MSM: Israelis are killed by rockets; Lebanese are killed by Israelis.)
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To: Publius6961

As I read this I keep thinking of Microsoft selling anti-virus programs.


12 posted on 03/03/2008 9:49:04 AM PST by Loud Mime ("Life was better when cigarette companies could advertise and lawyers could not")
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To: endthematrix

I had a front headlightlens replaced with a knock off.
It fogs up and the focus is screwed up but I saved $40.oo!


13 posted on 03/03/2008 9:50:07 AM PST by ChiMark
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To: endthematrix

The problem seems to be that some parts are dubious in the nature of the patent. It is like patenting the antena of a car and then when accidented the state law requires the IDENTICAL antena.

I can understand their frustration as chinese companies ignore patents and make black market identical parts.

I see a new market for “grey cars” that are using identical fitting parts are are not for that original car.


14 posted on 03/03/2008 9:50:18 AM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Red Badger

No kidding, try and obtain some GM error code definitions without going to a dealer, no deal.


15 posted on 03/03/2008 9:51:52 AM PST by bigfootbob
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To: Domandred

it might just force more open customizing.

who made the law that precluded a customized grille on the front?

Insurance companies have been pushing for knockoff repair parts for years.


16 posted on 03/03/2008 9:55:59 AM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: norraad

Um, no, the DieNasty wasn’t a “big” car. It was a frigging K-car variant!!!!!

No, the last big American car was the Caprice/Roadmaster/Fleetwood twins that GM killed off in the 90s, followed by the Ford Crown Vic/Grand Marquis/Town Car which is still with us.

Fortunately, before the Germans took over, Chrysler made the LH cars which were far better than the DieNasty - which can be proven through observation. Few DieNastys are driven on public roads, while there are still millions of Concordes and Intrepids running around.


17 posted on 03/03/2008 10:05:32 AM PST by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: BGHater

This also could make junkyards more profitable.


18 posted on 03/03/2008 10:10:13 AM PST by chopperman
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To: bigfootbob

I bought a small, handheld code reader from Sears that works on OBDII equipped cars from all mfrs. The codes are given on a software CD that comes with it. It allows you to clear the codes and the re-set the “Service Engine Soon” light, too. Even if you don’t have the device, Autozone will read (FREE!) the codes for you from their store owned device and give you a printout of what they mean......


19 posted on 03/03/2008 10:11:25 AM PST by Red Badger ( We don't have science, but we do have consensus.......)
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To: endthematrix

ONE MUST SACRIFICE A SMALL FURRY ANIMAL BEFORE REMOVING THE SHROUD!.................


20 posted on 03/03/2008 10:12:13 AM PST by Red Badger ( We don't have science, but we do have consensus.......)
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