Call for end to car parts logjam

Date: 16/04/1998

By Myles Neligan

MEPs are putting mounting pressure on EU governments to break the deadlock over a European Commission proposal to harmonise national design copyright laws.

Agreement on the plan has been held up for nearly five years by a dispute over whether visible replacement car parts such as body panels and windscreens should benefit from copyright protection.

The issue sparked deep divisions between member states, with France, Germany, Spain, Belgium and the Netherlands supporting the European automotive industry's claim that they should benefit, while others argued that this would effectively hand monopoly power over the 15-billion-ecu spare-parts market to car manufacturers.

After years of wrangling, a compromise was reached between ministers. It would have resulted in a 'free-for-all' clause being inserted into the proposed directive, allowing individual member states to decide for themselves whether to permit companies to copy carmakers' original designs.

This hard-won agreement was, however, rejected by the European Parliament which insisted that independent manufacturers should be allowed in principle to make spare parts provided they paid a licence fee to the car company which designed them.

The only way out of the impasse is for a new compromise to be struck between the Council of Ministers and the Parliament, through conciliation talks. But the start of negotiations has been delayed because of continuing divisions between member states over how to respond to MEPs' demands.

Once the talks begin, the two sides will have just eight weeks to settle their differences, although negotiators can agree to 'stop the clock' to allow a little more time. If they fail to reach agreement at the end of the process, the proposal will be dead and buried.

There is, however, growing frustration in the Parliament over the long delay in launching the conciliation procedure, which prompted MEPs to press for the talks to begin at an informal meeting with member state representatives late last month.

"Some of the MEPs expressed themselves quite forcefully," said a parliamentary official.

"There is a strong feeling that this has gone on quite long enough and that the time has now come to take tough decisions.".

Others warn that there is little point in forcing the pace, arguing that national authorities must be allowed time to reach a mutually acceptable compromise if there is to be any chance of a lasting final agreement.

"Quite frankly, I think it would be a disaster if negotiations with the Parliament were to start any time soon," said a Council official. "There is still no real sign of movement from the member states."

Industry representatives believe that the best hope of a breakthrough lies in other industries which depend heavily on design protection, such as fashion and textiles, bringing pressure to bear on their governments to push through the legislation.

"This may well happen in France where the fashion industry is very strong," said Rupert Hughes of the European Campaign for the Freedom of the Automotive Repair Market.

MEPs are putting pressure on EU governments to break the deadlock over the proposal to harmonise national design copyright laws.