Vehicle manufacturers want parts monopoly, claim Factors
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ACTION being taken by certain vehicle manufacturers under existing copyright laws must inevitably lead to restraint of trade in the replacement components industry by the creation of a monopoly situation in favour of these vehicle manufacturers.
This is one of several submissions being made to the Committee to consider the law on copyright and designs, which has been set up under the chairmanship of Mr Justice Whitford.
In the short term, submits the MFA, the payment of royalties being demanded by the manufacturers must inevitably lead to an increase in the cost of parts to the motor factoring trade. This must in turn be passed to the garage trade and the public, thus adding to the inflationary spiral.
The MFA is also concerned that the imposition of a royalty places the British parts manufacturer at a serious disadvantage compared with its overseas counterparts. They may well not have to pay the royalty and will thus be able to outsell their British competitors not only in the overseas market but also on the home market.
Apart from the parts manufacturers who supply both the vehicle manufacturers and the replacement industry there are those manufacturers who do not supply original equipment. But, maintains the MFA, among this latter category are very reputable manufacturers of international standing whose products are of equal reliability to those of manufacturers in the former category. In any case no accepted channel of distribution would knowingly sell and or fit a part which was not up to the required standard.
Royalty requirement
The MFA claims that the imposition of a royalty requirement would only increase the cost of parts to such an extent as to encourage the sale of parts on unknown origin and/ or quality. Among other points put forward to the Committee by the MFA are that massproduced items should not be afforded monopoly protection and that protection of any kind should be afforded only to good and meritorious designs which are not dictated by the function the item has to perform.
The Association has also put forward the view that the most effective method of combating the abuse of the marketing of components of inferior quality and performance is by means of specific legislation and regulations, in the manner of legislation which at present applies to the building trade, and not by means of invoking the Law or copyright and design.