The evolution of the Repair Clause in European Union (EU) design case law has sparked significant debate and legal challenges.
Continue reading to learn more about the interpretation of the Repair Clause by the European Court of Justice (ECJ) and the Higher Regional Court of Düsseldorf, through data extracted from the design case law module exclusively available in Darts-ip.
What is the Repair Clause?
This Repair Clause allows the use of registered designs to manufacture and dispose of parts that restore a complex product’s original appearance. However, it has been a contentious issue among manufacturers, legal experts and policymakers. This clause, previously foreseen in Article 110 of the Community Design Regulation, was not inserted in the European Design Directive, leaving the decision to implement this provision with Member States.
The recent adoption of a permanent repair clause in the new Design Legislation Reform by the European Commission aims to address these challenges, but it has also introduced new complexities and controversies.
Interpretation by the ECJ
The clause was broadly interpreted by the ECJ in the precedent-setting Acacia case where a manufacturer reproduced wheel trims incorporating Audi’s and Porsche’s designs for repair purposes.
The Court ruled that a component part is any part ‘essential for the normal use’ of the complex product, rejecting Audi and Porsche’s argument that only parts whose shape depends on the appearance of the complex product should qualify as ’component parts.’ Wheel trims would, therefore, be excluded from the repair clause’s scope, as their appearance can vary, unlike car body panels.
The Court’s broad interpretation, therefore, included wheel trims in the repair clause, as their removal would impair the normal use of a car.
The Düsseldorf Court Decision
In the Volkswagen vs. W+S Autoteile GmbH case , the Higher Regional Court of Düsseldorf differed from the ECJ’s interpretation.
W+S Autoteile GmbH sold car key housing, which Volkswagen considered to infringe on its registered community design. Volkswagen sued W+S and was successful in the first instance.
W+S appealed to the Higher Regional Court of Düsseldorf and filed a counterclaim for a declaration of invalidity of Volkswagen’s RCD, relying on the repair clause in Art. 110(1) CDR. They argued that the use of the car key and its housing requires the key’s frequency to be aligned with that of the responder in the car, and that frequency must be unique for the key to only open that particular car and not others. They claimed that a car key is a unique part of a car even though it is not physically attached to it.
However, the Higher Regional Court of Düsseldorf dismissed the appeal and the counterclaim on June 13, 2024, ruling that the informed user would not perceive the car key housing as part of the car, and its replacement would not be considered a repair of the car itself.
According to the decision, a car key housing is an accessory with its own function and is a complex product. The court also emphasized that for the repair clause to apply, the manufacturer must demonstrate how the part will be used exclusively for repair purposes. In this case, W+S did not show how its car key housing would be used solely for repair, further weakening its argument.
Changes in the legislative framework with the design package and critics
The new EU Design Regulation and the recast Design Directive published on November 18, 2024, introduced a new form-dependency requirement in the repair clause. This revision narrows the scope of the repair clause by limiting it to parts that are form-dependent for the complex product’s proper function. This new harmonized repair clause aims to ensure a more consistent approach across all Member States.
However, this new repair clause has already raised controversy despite its intentions to foster sustainability and competition. Critics perceive that it undermines the economic incentive behind design protection, which is intended to encourage innovation and reward investment in original designs.
Further concerns arise over the potential for lower-quality spare parts entering the market. While the repair clause aims to promote the circular economy by enabling more repairs, the risk is that cheaper, lower-quality parts that do not meet the same safety or performance standards might be used instead of original designs.
Another criticism stems from the potential complications of applying the repair clause in other areas of IP law. The ECJ has made it clear that the repair clause does not apply to trademark law, as seen in the recent Audi AG v. GQ decision. This can cause complications for companies producing spare parts that incorporate both trademark and design elements.
Conclusion
While the ECJ adopted a broader approach and interpretation of the repair clause, including parts that, while not strictly dependent on the product’s form, are necessary for its normal use, the recent Düsseldorf Court’s decision and the reform of the Design legislation show a significant trend toward a more restrictive interpretation.
With all the challenges raised, this clause has proven to be a controversial point in the negotiation of the Design Package. It will impact litigation and prosecution activity for designs across Europe. Monitoring its application in each jurisdiction is, therefore, critical to informing design strategy.
Darts-ip offers exclusive insights to case law and precedent monitoring. Leverage our deep data analytics, powerful insights, and over 176,000 design cases to keep your design strategy up to date with the latest evolution in case law.
If you are subscribed to Darts-ip, search darts-590-096-P-en and darts-747-461-F-de to read the case files. If you are not yet subscribed, you can start your free trial today.
Related insights
The latest news, technologies, and resources from our team.
