IP in Industrial Design: The Repair Clause 2023-11-02
Industrial design plays a pivotal role in shaping a product's functional features, aesthetics and value throughout the lifecycle of the product. Emerging technologies such as 3D-printing are shifting the way we valuate things; the design blueprints are increasingly becoming the determinant of the value of industrial products.
From an economic standpoint, industries heavily reliant on design make substantial contributions to the European Union's (EU) economy. Over the years 2017-2019, these industries accounted for nearly 16% of the EU's Gross Domestic Product (GDP) and were responsible for 13% of all jobs within the EU.
Industrial design rights are essential to safeguard the uniqueness of the products. Still to converge with the Green and Circular economy initiatives, it is also essential to safeguard the cost-effective maintainance and repairability of complex industrial products (i.e. cars, home appliances, etc.).
The EU's framework for protecting industrial designs is over two decades old. While Directive 98/71/EC, commonly known as the Design Directive, partially harmonized the laws of EU Member States regarding industrial design protection, Council Regulation (EC) No 6/2002, also referred to as the Community Design Regulation, established a self-contained system for safeguarding design rights. This system, encompassing registered Community designs (RCDs) and unregistered Community designs (UCDs), ensures consistent protection across the EU.
The recently proposed EU design legislation contains interim provisions on spare parts, since design rights are assigned with regard to complex products encompassing all visible parts. The question arose about how to deal with those parts when they have to be replaced for repair purposes (by spare parts). Contradictory interests were at stake: on one side, manufacturers (the car industry in particular) were unwilling to allow sales of replica parts (e.g. spare parts that are replicas of the original parts) so as not to lose their market, while on the other, consumers and other industries were willing to enable sales of such replicas to guarantee true competition and lower prices.
To resolve the issue, an interim compromise solution – a freeze plus clause – was adopted. Under this clause, which is still in force today, Member States are obliged to retain their existing laws on whether spare parts should benefit from protection until amendments to the Directive are adopted on a proposal from the Commission. They can only change these laws if their aim is to liberalize the market.
The undergoing review of the Design Directive and the Community Design Regulation is a crucial step toward modernizing and adapting EU design protection laws. By addressing these challenges, the EU aims to maintain a thriving design-intensive industry that drives economic growth while fostering the application of circular economy initiatives on complex products.
Source: https://www.europarl.europa.eu/RegData/etudes/BRIE/2023/751401/EPRS_BRI(2023)751401_EN.pdf
From an economic standpoint, industries heavily reliant on design make substantial contributions to the European Union's (EU) economy. Over the years 2017-2019, these industries accounted for nearly 16% of the EU's Gross Domestic Product (GDP) and were responsible for 13% of all jobs within the EU.
Industrial design rights are essential to safeguard the uniqueness of the products. Still to converge with the Green and Circular economy initiatives, it is also essential to safeguard the cost-effective maintainance and repairability of complex industrial products (i.e. cars, home appliances, etc.).
The EU's framework for protecting industrial designs is over two decades old. While Directive 98/71/EC, commonly known as the Design Directive, partially harmonized the laws of EU Member States regarding industrial design protection, Council Regulation (EC) No 6/2002, also referred to as the Community Design Regulation, established a self-contained system for safeguarding design rights. This system, encompassing registered Community designs (RCDs) and unregistered Community designs (UCDs), ensures consistent protection across the EU.
The recently proposed EU design legislation contains interim provisions on spare parts, since design rights are assigned with regard to complex products encompassing all visible parts. The question arose about how to deal with those parts when they have to be replaced for repair purposes (by spare parts). Contradictory interests were at stake: on one side, manufacturers (the car industry in particular) were unwilling to allow sales of replica parts (e.g. spare parts that are replicas of the original parts) so as not to lose their market, while on the other, consumers and other industries were willing to enable sales of such replicas to guarantee true competition and lower prices.
To resolve the issue, an interim compromise solution – a freeze plus clause – was adopted. Under this clause, which is still in force today, Member States are obliged to retain their existing laws on whether spare parts should benefit from protection until amendments to the Directive are adopted on a proposal from the Commission. They can only change these laws if their aim is to liberalize the market.
The undergoing review of the Design Directive and the Community Design Regulation is a crucial step toward modernizing and adapting EU design protection laws. By addressing these challenges, the EU aims to maintain a thriving design-intensive industry that drives economic growth while fostering the application of circular economy initiatives on complex products.
Source: https://www.europarl.europa.eu/RegData/etudes/BRIE/2023/751401/EPRS_BRI(2023)751401_EN.pdf
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