The U.S. House Committee on Small Business held a
hearing entitled "The Impact of Intellectual Property on Entrepreneurship and Job Creation."
Rep. Nydia M. Velazquez, D-N.Y., chairwoman of the committee, held the hearing to highlight
the importance of protecting intellectual property and how this protection can "spur job growth."
Several witnesses from different backgrounds, ranging from business software to motor
vehicle equipment, testified at the hearing. William Mansfield, director of Intellectual Property
for ABRO industries, testified on behalf of the Motor & Equipment Manufacturers Association
(MEMA), representing companies that manufacture motor vehicle parts for use in the light
vehicle and heavy duty original equipment and aftermarket industries.
Mansfield said, "Counterfeit parts and components for cars, trucks, buses and commercial
vehicles pose a critical problem to the American economy and the supplier industry because of
the wide range of counterfeit products manufactured and trafficked worldwide. In the past,
MEMA has estimated that counterfeit goods cost motor vehicle suppliers at least $3 billion in the
United States and $12 billion globally in lost sales. Please note that the industry believes these
numbers are conservative. In fact, Frost and Sullivan estimated in 2006 that the global losses to
motor vehicle suppliers due to counterfeiting would be as high as $45 billion in 2011."
Mansfield continued with comments relative to the health and safety impacts of
counterfeit motor vehicle parts. He said, "There is a wide range of counterfeit parts and
components for cars, light trucks, buses and commercial vehicles that are manufactured and
distributed globally. Many counterfeit products, especially in the automotive parts industry, go
undetected and are purchased unintentionally. Because trademark and brand infringement are so
convincing, many times consumers or installers of these components may not be able to
recognize or distinguish the genuine part from the counterfeit part. In many instances, the part
manufacturer becomes aware of counterfeit products when responding to warranty claims of a
failed product.
"Counterfeit motor vehicle parts may fail to meet U.S. Federal Motor Vehicle Safety
Standards (FMVSS) or other industry-accepted safety standards; likewise, these parts may be
produced with dangerous, inferior materials and have a shorter-than-average service life. Thus,
the use of these counterfeit vehicle parts – such as brakes, brake pads, brake fluid, tires, belts, and
automotive lighting, which look identical to genuine, brand name parts – may result in sudden,
catastrophic engine failure, brake failure, or other system malfunction, endangering the car or
heavy duty truck driver operating the vehicle and all motorists traveling the same roads with
these vehicles."
To view the witness list, along with the full text of the testimony, visit ASA's legislative
website at www.takingthehill.com.
