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Letter to the Editor
Friday December 8
Ford Wins - Keystone Loses
In a major victory for the OE vehicle manufacturers, an administrative law judge of the U.S. International Trade Commission has ruled in favor of Ford in its suit against Keystone Automotive Industries, Inc., the aftermarket parts distributor, and other aftermarket parts suppliers in a case covering patents and copyrights on OE sheet metal parts.Keystone plans to contest parts of the preliminary ruling in the patent violation suit filed against the company by Ford Global Technologies LLC.
The ruling, issued December 4 by an administrative law judge of the U.S. International Trade Commission, said that seven of ten design patents related to the Ford F-150 truck were enforceable and infringed Ford's design patents. However, the judge ruled that the other three patents are invalid because of Ford's prior public use of the designs.
Shares of Keystone fell on the news, tumbling $5.98, or 15.4 percent, to $32.78 in trading on the Nasdaq. The stock has traded between $28.88 and $46.92 over the past year.
Keystone had claimed that Ford's prior public use also rendered the other seven patents invalid and unenforceable, and that even if valid, none of the ten patents is infringed.
Ford initially charged that Keystone and the other respondents infringed 14 design patents directed to various exterior parts of Ford's 2004/2005 F-150 truck, but dropped four design patents before the trial commenced.
The ruling will be reviewed by the International Trade Commission, which must issue its ruling on or before March 5.
Keystone said it and the other respondents in the case will file a petition asking the commission to review and reverse other portions of the initial determination, as well as earlier rulings by the administrative law judge.
The commission has 45 days to decide whether or not it will grant a petition for review.
If the courts uphold Ford, hundreds of copyright patents will surely be filed, both by Ford and other OEs to protect their design rights and patent position on sheet metal for new vehicles as they are introduced.
This court victory for U.S. vehicle manufacturers will bring badly needed jobs back to American workers in Detroit and other cities with OE stamping operations.
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