Bill to limit automakers' design rights

By Kim Jae-won

An opposition lawmaker submitted a bill Thursday proposing limitations on the design rights of car manufacturers that would allow drivers to replace brand name auto parts with certified cheaper versions.

Rep. Min Byung-doo of the New Politics Alliance for Democracy said he submitted the bill which proposes legislation to limit the period that automakers can claim design rights over their cars to no more than three years in the case of repairs. A design right is an intellectual property right that protects the visual design of products.

“A design right should be limited to 36 months in the case of auto parts replacement. Australia has a similar clause in its 2003 Design Law as well as many countries in the EU,” said Rep. Min at a press conference.

The two-term legislator said the bill aims to reduce insurance premiums for drivers. Expensive auto parts are one of key reasons that insurance companies hike premiums for customers. In particular, prices of foreign automakers’ parts are much higher than local ones, burdening customers further.

Rep. Min also criticized automakers for being reluctant to offer repair services for drivers who do not want to use their auto parts.

“Local automakers often refuse to provide free repair services for those who do not use their auto parts. Foreign automakers claim their design rights, preventing customers from using other brands of auto parts,” he said.

The lawmaker said Korea’s auto parts market is dominated by automakers’ brands. He said auto parts from non-original equipment manufacturers (non-OEMs) accounts for 5 percent of the market. This is far lower than the U.S. where non-OEM auto parts account for 45 percent of the market.

Foreign automakers said security concerns for non-OEM auto parts should be tackled.

“We want to clarify that non-OEM auto parts’ safety issues should be examined thoroughly before they are sold. And also, in case of accidents with non-OEM auto parts, the responsibility should be given for the auto parts makers,” said a spokeswoman of Korea Automobile Importers & Distributors Association (KAIDA), a lobby group for foreign automakers.

According to data from KAIDA, 140,000 cars of foreign automakers had been sold from January to July here from 112,000 a year ago. By brand, German automaker BMW topped the list with 28,000, followed by its compatriot brand Mercedes-Benz with 27,000.