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IARC 25 - T

European Parliament approves directive aimed at liberalizing body parts market

On March 14, 2024, the European Parliament approves a directive heralding a new era of liberalization in the body parts market. This directive, featuring a pivotal repair clause, endeavors to liberalize access to these components, fostering substantial cost savings for consumers.

 

European Parliament approves directive aimed at liberalizing body parts market soc
Image credit: Shutterstock

The European Parliament’s recent move marks a pivotal advancement in opening up the body parts market. Approved on March 14, 2024, in Brussels, this directive constitutes a reform initiative targeting the European intellectual property framework concerning designs and models. Expected to gain endorsement from the Council of the EU imminently, this reform introduces a crucial provision, particularly impactful to the automobile after-sales industry.

At its core, the directive introduces a “repair clause” designed to exempt replacement parts utilized for restoring the original appearance of intricate products from design protection. Advocated by Feda and Figiefa, this provision endeavors to liberalize the market for so-called “captive” parts, thereby offering consumers more economically viable options for maintaining their vehicles.

An impact study estimates that terminating this monopoly could translate into over 500 million euros in cumulative savings for consumers across the Union over the course of a decade.

Moreover, the directive outlines an eight-year transitional period to standardize this provision at the national level. Specifically, if a Member State’s national law confers design or model protection on spare parts (as is the case in France), the country will continue to extend this protection to designs or models whose registration was sought prior to the directive’s enforcement for eight years.

Upon final adoption, Member States will have a three-year window to incorporate the directive into their respective domestic legislation.

Source j2rauto.com

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