Ford Files Compliant With ITC Over F-150 Truck Aftermarket Parts

Taipei, Jan. 20, 2006 (CENS)--Ford Motor Co. of the U.S. recently filed a compliant with the U.S. International Trade Commission (ITC) accusing Keystone Automotive Industries, Inc., a major North American distributor of aftermarket collision replacement auto parts, with the importation and sale of certain aftermarket collision replacement parts for the Ford F-150 truck that infringe on Ford' s design patents.

At least four Taiwan aftermarket auto-parts makers are involved in the Ford compliant the ITC is investigating, including TYC Brothers Industrial Co., Ltd. (a maker of auto lamps); Depo Auto Parts Ind. Co., Ltd. (auto lamps); Gordon Auto Body Parts Co., Ltd. (sheet-metal body parts); and YCC Parts Mfg. Co., Ltd. (plastic body parts); according to Board of Foreign Trade (BOFT) under Taiwan' s Ministry of Economic Affairs (MOEA).

According to Keystone Automotive's press release, the ITC issued a notice of investigation that names several Taiwan manufacturers and U.S. distributors, including Keystone. The dispute centers around 14 design patents for the 2004 Ford F-150 truck, covering its grilles, headlamps, bumpers, bumper lower valances, hoods, fenders, side-view mirrors, and tail lamps. Ford is seeking a general exclusion order preventing the importation of these parts into the U.S., the press release said.

"This legal initiative represents an ongoing campaign by original equipment (OE) manufacturers to deny consumers an alternative product for automotive collision repair. This case could have far-reaching consequences beyond just the automotive industry, and we intend to vigorously defend our right to distribute aftermarket parts, '' said Richard Keister, president and chief executive officer (CEO) of Keystone Automotive.

The matter will be heard by an ITC administrative law judge, Keystone Automotive said, probably in the late summer or early fall of 2006, with an opinion expected by the end of the year. The judge's ruling is subject to review by the ITC, then to a 60-day Presidential review period, and ultimately an appeal may be lodged with the U.S. Circuit Court of Appeals for the Federal Circuit.

The four affected Taiwan auto-parts makers have kept a very low profile about the ITC notice, worrying about effects on their stock prices.

According to some local auto-parts makers, most American carmakers have not won lawsuits alleging infringements of design patents for the exterior styling of their auto models in the past, so Ford may face an uphill battle against Keystone. The local parts makers also pointed out that even in the worst-case scenario-a ban on the exports of Taiwan-made F-150 truck parts-the impact would be minor, as sales of F-150 truck parts are only a very small part of local auto-parts exports.

Some involved Taiwan auto-parts makers, including TYC, have resolved to follow Keystone's move to hire lawyers to defend their rights.