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Business Aspects of the Spare Parts Industry

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An International Perspective on Design Protection of Visible Spare Parts

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Abstract

Because production of compatible component parts can provide a steady source of revenue, it constitutes an attractive business model for manufacturers of both original products and of spare parts.

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Notes

  1. 1.

    See Berns 2013, p. 1; Riehle, FS Möschel 2011, p. 1076.

  2. 2.

    See Berns 2013, p. 3; Riehle, FS Möschel 2011, p. 1076.

  3. 3.

    Beldiman 2015, pp. 104 et seq.; Fischman Afori 2008, pp. 1105 et seq.

  4. 4.

    Cf. Riehle 2011, pp. 1 et seq.; see also European Policy Evaluation Consortium, Impact assessment of possible options to liberalise the aftermarket in spare parts – Final report to DG internal market (EPEC Report), Paris, November 18, 2003, pp. 1 et seq.; to this, see Straus 2005, pp. 973 et seq.

  5. 5.

    Hartwig 2016, p. 108, who names coffee makers, vacuum cleaners, smartphones and tablets as other possible complex products whose spare parts would fall under the repair clause.

  6. 6.

    E.g. printers, razor blades, watches. For watches and clocks, as well as and other complex products in general, see Europe Economics 2015, pp. 137, 142 et seq. See also Dyson Ltd v. Qualtex (UK) Ltd [2006] EWCA Civ 166 (on vacuum cleaners).

  7. 7.

    EPEC Report 2003, p. i.

  8. 8.

    EPEC Report 2003, p. i.

  9. 9.

    See Europe Economics 2015.

  10. 10.

    Europe Economics 2015, pp. 9, 146 et seq. (on visible spare parts).

  11. 11.

    Cf. Europe Economics 2015, pp. 142 et seq.

  12. 12.

    Europe Economics 2015, pp. 145.

  13. 13.

    The graphic in Europe Economics 2015, p. 146, illustrates that a high share of spare parts for watches is produced by manufacturers from other countries, especially in Asia.

  14. 14.

    Europe Economics 2015, p. 146, has taken this quote from General Court, 15 December 2010, Case T-427/08 – CEAHR v. Commission.

  15. 15.

    Europe Economics 2015, p. 146.

  16. 16.

    In preparation for the Roundtable discussion of 28 October 2015, representatives of the watch industry were contacted and invited to participate, but no affirmative response was received.

  17. 17.

    The introductory part of the study made mention of other product categories, such as furniture, textiles, communication equipment. The absence of further investigation into this industry is to a large extent attributable to the unavailability of reliable data, given non-transparent market structures and the difficulty of differentiating between original and imitated spare parts. Cf. Europe Economics 2015, p. 17 et seq., p. 142.

  18. 18.

    An added factor is the relatively high costs of automotive vehicles, which mandate repair by part replacement rather than a new acquisition.

  19. 19.

    For more data, especially relating to the automotive market, see Reeves and Mendis 2015, p. 12; Berns 2013, pp. 14 et seq.

  20. 20.

    Cf. Legislative draft of the German government, BT-Drucks. 15/1075, pp. 65 et seq.; Drexl et al. 2005, pp. 449 et seq.; Pentheroudakis 2002, p. 685.

  21. 21.

    Cf. Berns 2013, p. 11; for more details, see Blanken 2008, p. 24.

  22. 22.

    See Riehle 1993, p. 52.

  23. 23.

    Berns 2013, pp. 12, 16 et seq.; Blanken 2008, p. 25.

  24. 24.

    For an overview and comparison of data from the different EU member states (from 2005), see Straus 2005, p. 978.

  25. 25.

    Autorité de la concurrence 2012.

  26. 26.

    Berns 2013, p. 19.

  27. 27.

    Berns 2013, pp. 12, 16 et seq.; Blanken 2008, p. 25.

  28. 28.

    In the EU, this fourth level consists of approx. 287 million users, i.e. automobile owners, with a market volume of about 765 billion Euro (in consumer prices), not including supplies such as oil, chemical and other minor components.

  29. 29.

    Europe Economics 2015, p. 144; for details on the market structure (from the consumer’s perspective), see also Drexl 2012, p. 377.

  30. 30.

    For automobile manufacturers, it is complicated to permanently keep the spare parts ready (for details, see Kroher 1993, p. 464).

  31. 31.

    Berns 2013, p. 16.

  32. 32.

    Kur 2010, note 44.

  33. 33.

    Independent manufacturers have also raised concerns about the fact that the imbalance in economic strength between primary producers and contract manufacturers, the contractual provisions often contain provisions reflecting the tension in interests among these market participants, such as exclusivity obligations, minimum purchase, or single brand requirements. See Berns 2013, p. 19.

  34. 34.

    Certain advances in the position of the independent suppliers have resulted from intervention of competition law limiting in the OEMs’ ability to use restrictive contractual clauses in supply and distribution agreements, as well as based on withholding of technical information designed to eliminate or limit competition in the secondary markets. Riehle 1993, pp. 54 et seq.

  35. 35.

    Berns 2013, p. 16.

  36. 36.

    Cf. The Asian Patent Attorneys Association (APAA) 2009.

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Authors and Affiliations

  1. Academic Director and Founder, Center for Transnational Intellectual Property, Bucerius Law School, Hamburg, Germany

    Dana Beldiman

  2. UC Hastings College of the Law, San Francisco, USA

    Dana Beldiman

  3. Researcher, Center for Transnational Intellectual Property, Bucerius Law School, Hamburg, Germany

    Constantin Blanke-Roeser

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Beldiman, D., Blanke-Roeser, C. (2017). Business Aspects of the Spare Parts Industry. In: An International Perspective on Design Protection of Visible Spare Parts. SpringerBriefs in Law. Springer, Cham. https://doi.org/10.1007/978-3-319-54060-3_2

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