DEARBORN, Mich. & CHICAGO — A settlement agreement was reached yesterday between Ford Motor Co. and LKQ Corp., a distributor of new non-OE aftermarket, recycled salvage and remanufactured OE parts, in litigation filed by Ford to protect its design patents on genuine Ford collision parts. The settlement provides that LKQ will not challenge the validity and enforceability of Ford’s design patents during the term of the agreement.
The settlement ends two legal actions: The first involving replacement collision parts for Ford’s F-150 pickup truck, which had advanced to the Federal Circuit Court of Appeals; the second involving replacement collision parts for the Ford Mustang, which was before the U.S. International Trade Commission. Details about the agreement are confidential and will not be disclosed.
"The settlement protects U.S. jobs and provides consumers with choices when repairing their vehicle," said Darryl Hazel, president, Ford Customer Service Division (FCSD).
As part of the settlement agreement, LKQ will be the only distributor of non-Original Equipment aftermarket copies of genuine Ford collision parts protected by design patents. LKQ will pay Ford a royalty for each such part sold during the agreement’s term, which extends through September 30, 2011 subject to renewal upon mutual agreement of Ford and LKQ.
"The agreement we reached is beneficial to both Ford and LKQ," said Joseph Holsten, president and chief executive officer of LKQ. "As the sole distributor of new non-Original Equipment aftermarket parts protected by Ford design patents, we will have the sole right to sell these parts in the United States for all of Ford’s models."
Ford and LKQ will also work together to stop infringement of Ford’s design patents.
Hazel stressed that the settlement does not endorse the quality or use of non-Original Equipment aftermarket replacement parts sold by LKQ Corporation. FCSD and LKQ will continue to compete vigorously, he said.
