ACEA

Robust intellectual property (IP) laws encourage companies to innovate and support investment in R&D. The automotive sector therefore welcomes measures to protect legitimate manufacturing interests and moves to drive out the counterfeiters.

It is therefore hard to understand why the Commission would push ahead with plans to abolish design protection for visible spare parts. They expect no price benefit for consumers; there are also genuine safety concerns as well as serious implications for investment and jobs in Europe.

Abolish design protection would also send entirely the wrong message to countries, like China, which are being urged to do more to prevent vehicle and parts counterfeiting and fight intellectual property rights (IPR) infringements.

Counterfeiting is a multi-billion euro problem that affects all sectors of the motor industry, from parts and accessories suppliers to packaging and even entire vehicles. It harms the industry by delivering an unfair advantage to the supplier, devaluing legitimate investment in R&D and threatening jobs and prosperity in Europe.

In the auto sector, counterfeiting presents particular risks to consumers. It opens the door to poorer quality products and poses unnecessary safety risks for motorists and other road users.

An international problem

Trademark and design infringements are particularly prevalent in regions outside the EU, mainly in Asia (particularly China), the Middle East and South America.

However, some counterfeiting also takes place in southern and eastern Europe. The European automotive industry is committed to safeguarding its interests. Together with counterparts in the US and Japan, auto makers continue to urge the World Trade Organisation to fulfil its obligations to uphold intellectual property rights.

Active steps have already been taken by the sector and the EU to limit the supply of counterfeit automotive goods. In China, the government has finally issued regulations on better enforcement of IP protection for automotive products; the industry will continue to urge for their proper implementation, and European manufacturers have set up a group of experts to exchange information and promote a collaborative approach to tackle the issue.

Design protection

The EU recognises the importance of intellectual property rights for competitiveness, encouraging better protection in countries where it is weak. In Europe, harmonised trademarks and patents, and strong enforcement have helped deliver on this objective.

In this climate of robust protection, it is hard to understand the rationale behind the proposal to abolish European design protection rules for visible spare parts. These include bumpers, fenders, bonnets, radiator grills and headlights. If implemented, the move risks up to 50,000 European jobs as well as investment in R&D which depends on strong IPR rules.

Contradictory messages

The proposal does not sit well with either the Lisbon Agenda which aims to promote growth and high-skills investment in Europe, or the Directive on Pedestrian Protection, a set of design rules which have helped drive down casualties on European roads.

Both could be compromised. The move would also present mixed messages to overseas governments and industry stakeholders. The result could be a serious loss of credibility, at a time when the European automotive industry and regulators alike are trying to take a lead in tackling a growing international problem.

No consumer benefit

Scrapping design protection would not necessarily lower prices paid by the consumer. That was the conclusion of the Commission’s own consultants, Technopolis. Their report assumed that, even when copied parts could be produced more cheaply than originals, the savings would not necessarily be passed on to consumers. Instead, they expected them to benefit parts’ traders, repairers and insurance companies.

last updated 19/05/2009

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