The European Union (finally) adopts a repair clause, allowing freedom of choice for visible repair spare parts
11/10/2024
Since its creation in 1993, ECAR (the European Campaign for the Freedom of the Automotive Parts and Repair Market) has been advocating for the adoption of a European repair clause which provides to all citizens a real, open and affordable right to repair. Already existing in several Member States, the repair clause grants full protection to the manufacturer on the design rights of its products (such as an entire car), except for visible ‘must match’ spare parts (such as car body panels, headlamps and windscreens) that are used for repair purposes. On 10 October 2024, following a final vote from the Council of the EU, a single and harmonised European repair clause was finally inserted in the EU Design Directive and confirmed in the Design Regulation.
In a truly circular economy, consumers should always be allowed to select the spare parts of their choice when repairing their products, regardless of the original brand or supplier. This reform will ensure that intellectual protection laws can no longer be misused to impose unfair and unjustified monopolies on visible repair spare parts through design rights, in the automotive aftermarket as in others.
A major step forward towards a socially fair and circular economy
This historic agreement follows more than three decades of political discussions, expert reviews and debates in Brussels, Strasbourg and in the national capitals, with support from consumer associations, independent automotive aftermarket operators and insurers. It is a major step forward towards a socially fair and circular economy, as allowing consumers to choose among competing suppliers of repair spare parts will increase their purchasing power and facilitate product repairs in all sectors.
For all designs registered under the Design Directive after the three years transposition period for the implementation into national legislation, the repair clause is immediately applicable. Due to diverging positions among the Member States on the status of already registered designs however, the negotiators had to strike a compromise on the timelines. For eight years following the entry into force of the Directive, design protection on visible repair spare parts will still be allowed in the Member States that had not yet liberalised their national markets when the law was adopted.
Legal certainty and business predictability in European repair markets
Most importantly, the negotiators agreed on a presumption of repair purpose for independent spare part manufacturers or sellers, which was required to ensure legal certainty and business predictability in European repair markets. Independent spare part manufacturers or sellers will be exempted from guaranteeing that their products are used for the sole purpose of a reparation, thus protecting them against unnecessary and costly litigations with design right holders. They must however inform consumers about the commercial origin of the product and the identity of the manufacturer through a clear and visible indication, so that they can make informed decisions.
The EU repair clause will bring significant social and economic benefits. Once fully applied, European consumers in the automotive sector will save between EUR 450 million and EUR 720 million annually thanks to increased competition, thus improving purchasing power and countering inflation. It will stimulate job creation and entrepreneurship in the European automotive aftermarket that counts for more than 500,000 SMEs and 4.5 million jobs. Beyond the automotive sector, all consumer goods covered by IP design laws will be eligible to competitive and independent visible repair spare parts.