Reps. Lofgren and Issa, Sens. Whitehouse and Hatch Introduce PARTS Act
Today, Senate Judiciary Committee members Sen. Sheldon Whitehouse (D-RI) and Sen. Orrin Hatch (R-UT), and House Judiciary Committee members Rep. Darrell Issa (CA-49) and Rep. Zoe Lofgren (CA-19) introduced the Promoting Automotive Repair, Trade and Sales Act of 2013 (PARTS), a bipartisan 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.
The PARTS Act amends U.S. design patent law to reduce the exclusivity period car companies hold on design patents for collision repair parts from 14 years to 30 months (or two-and-a-half years) during which time other suppliers could test, research and develop parts on a not-for-sale basis. The current 14-year design patent monopoly prevents aftermarket manufacturers from making or selling external collision repair parts, driving up costs by limiting consumer choice, crowding out competition leading to higher insurance rates and fees.
"This bipartisan bill is aimed at helping Americans who depend on their cars to be safe, reliable and on the road so they can get their kids to school and drive to work every day," said Rep. Zoe Lofgren. "By increasing fair competition in the auto parts market, consumers will ultimately benefit by getting the best value for their dollar when they need to shop for safe, high quality replacement car parts to keep their cars running."
"The decision to purchase an automobile is one of the biggest investments a family makes," Rep. Darrell 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."
The PARTS Act, introduced today, mirrors legislation introduced by Reps. Zoe Lofgren and Darrell Issa in the 112th Congress. It would take effect 90 days after enactment and apply to design patents issued prior to, on, and after the date of enactment.
Click here to read the full bill text of PARTS Act.