WASHINGTON--The American Insurance Association voiced supporttoday for legislation clarifying patent law to allow foreignaftermarket auto parts manufacturers to sell their products in theUnited States.

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The legislation, introduced by Rep. Zoe Lofgren, D-Calif., onMarch 14 before Congress left on a two-week recess, would reversean August 2007 ruling by the International Trade Commissionupholding a Ford Motor Co. patent protecting seven exterior partsof the F150 pickup truck, the largest selling vehicle in America,from generic foreign imports.

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The ITC ruled that seven of the 10 Ford patents were valid andinfringed, thus allowing Ford to block the importation ofaftermarket parts from overseas manufacturers.

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"Aftermarket parts are good because they foster competition inthe automotive parts industry, and competition means lower pricesand greater choice for consumers," said David Snyder, AIA vicepresident and assistant general counsel.

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"This legislation is a step toward preserving competition, whichaffects not only prices but also the availability of supply,consumer choice, innovation and, ultimately, the vitality of theeconomy," Mr. Snyder argued.

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The bill was filed as part of a two-pronged attack on the ITCruling. A federal suit was filed last October by the aftermarketparts distributor who wanted to sell exterior parts for theF-150.

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This bill would help reverse the ITC ruling that sought to banthe importation of competitive parts," Mr. Snyder said. "Because ofaftermarket parts, average consumer savings can range from 34percent to 83 percent."

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A spokesman for the Alliance of Automobile Manufacturers inWashington, D.C., said the trade group has not seen the bill andcannot take a position on it.

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But the spokesman cited a letter sent to the House Subcommitteeon Courts, the Internet and Intellectual Property Feb. 14, as wellas testimony that day by Carl Olsen, director of Ark Design,Detroit, Mich., at a hearing that day on the issue.

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"Industrial design protection for the auto industry protectsnumerous high-paying design and manufacturing jobs and also theautomobile industry's huge investment in the United States; isconsistent with the underlying policy goals of U.S. intellectualproperty law; and mirrors the intellectual property rightsprotection provided to auto manufacturers in Brazil, France,Germany, Japan and other countries," Mr. Olson testified.

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