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Ford, LKQ reach agreement

Post Time:Nov 12,2013Classify:Industry NewsView:122

Ford Motor Co. Dearborn, Mich., and LKQ Corp., Chicago, a distributor of new non-original equipmentaftermarket, recycled salvage and remanufactured OE parts, reacheda settlement agreement in litigation filed by Ford Motor Co. to protect its design patents on genuine Ford collision parts, according to an April 2 company release. The settlement provides that LKQ will not challenge the validity and enforceability of Ford's design patents during the term of the agreement.

The settlement ends two legal actions: The first, involving replacement collision parts for Ford's F-150 pickup truck, which had advanced to the Federal Circuit Court of Appeals; the second, involving replacement collision parts for the Ford Mustang, which was before the U.S. International Trade Commission. Details about the agreement are confidential and will not be disclosed, according to the release.

"The settlement protects U.S. jobs and provides consumers with choices when repairing their vehicle," said Darryl Hazel, president, Ford Customer Service Division, in the release. Hazel added that the settlement will benefit both companies and their customers in the following ways:

* Ford's enormous intellectual property investment is protected. * Ford will continue its U.S. investment, especially in southeast Michigan, to design, engineer and produce genuine Ford collision parts for sale through its U.S. dealer network. * LKQ will be the only distributor of non-original equipment aftermarket copies of genuine Ford collision parts protected by design patents. LKQ will pay Ford a royalty for each such part sold during the agreement's term, which extends through September 30, 2011 subject to renewal upon mutual agreement of Ford and LKQ. * Competition in the market will continue by ensuring consumers have the right to choose between OE and non-OE aftermarket parts. * Ford and LKQ will work together to stop infringement of Ford's design patents.

Hazel stressed that the settlement does not endorse the quality or use of non-OE aftermarket replacement parts sold by LKQ Corp. FCSD and LKQ will continue to compete vigorously.

"The agreement we reached is beneficial to both Ford and LKQ," said Joseph Holsten, president and CEO, LKQ, in the release. "As the sole distributor of new non-original equipment aftermarket parts protected by Ford design patents, we will have the sole right to sell these parts in the United States for all of Ford's models."

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Source: http://www.glassmagazine.com/news-item/auto/ford-lkq-reach-agreementAuthor:

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