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SMART Act In the Spotlight During House Judiciary Subcommittee Hearing

July 18, 2023

Today, the House Judiciary Subcommittee on Courts, Intellectual Property, and the Internet held a hearing (“Is There a Right to Repair?”) zeroing in on growing repair restrictions, implications for consumers, and federal right to repair measures, like the Save Money on Auto Repair Transportation (SMART) Act and Right to Equitable and Professional Auto Industry Repair (REPAIR) Act, that would provide much-needed relief to Americans struggling with increasing  car repair costs and parts shortages.

Here are three key moments:

University of Michigan Law Professor: Design patent misuse has “choke[d] off the supply of replacement parts needed to repair vehicles,” steering consumers to expensive OEM-branded parts that can cost hundreds of dollars more.

“Estimates are that design patents on collision parts are responsible for about $1.5 billion in additional expenditures… Do consumers know when they buy that vehicle that the repairs are going to be that expensive? I think in most cases, they don’t.”

Aaron Perzanowski, University of Michigan Law Professor

Perzanowski: Federal reform is critical to restoring competition in the car repair market.

 “…Would passage of the SMART Act in your view promote entry into the repair market of more mom-and-pop or independent shops and, if so, how would that advantage the end consumer?”

Rep. Laurel Lee (R-FL), SMART Act Co-Sponsor

“…In an environment where consumers are facing lower costs for repairs and fewer vehicles are being totaled… One of the byproducts here of the high prices of these replacement parts is more and more vehicles are being totaled. So, we would see more opportunity for competition in those market places. And generally… rely on this principle that the more competition we see, the lower prices are going to be, and the higher quality is going to be, and so I think that’s beneficial.”

Aaron Perzanowski, University of Michigan Law Professor

Chairman Issa: The SMART Act would restore access to affordable car repairs, while maintaining appropriate intellectual property rights for automakers.

“Design patents, historically, basically prevent your competitor from making a deceptively similar product… So much of the discussion today is…on protection that is granted by design patents. Much of what we’re looking at doing is to modify, enhance, or define design patents in a way in which they do not exclude six or seven or eight years later that faded headlight that can no longer be polished to be usable from costing you $1,500 to 2,500 dollars each in order to replace something that used to be available at the auto parts store for about six bucks.”

Rep. Darrell Issa (R-CA), SMART Act Sponsor

Now more than ever, consumers need Congress to advance bipartisan legislation, like the SMART and REPAIR Acts, to empower consumers, limit unfair practices, and promote a free and fair car repair market.

Tell your member of Congress to protect your right to repair today!

Have you been impacted by car repair restrictions? Click HERE to tell your story.