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Multi-National Sources Say Takata Corp. is to File for Bankruptcy Protection by Autobody News Staff
International media sources are reporting that Japanese airbag maker Takata Corp. is preparing to file for bankruptcy as early as the week of June 18 as it works toward a deal for financial backing from U.S. auto parts maker Key Safety Systems Inc., people familiar with the matter told Automotive News. Michigan-based Key Safety Systems Inc. is owned by Chinese supplier Ningbo Joyson. Takata’s steering committee recommended Key as the preferred bidder for the entire manufacturer.
Takata is expected to file for bankruptcy in the near future before selling its production operations to a newly formed company to pay off its debts to creditors, according to Nikkei. Fellow Japanese companies Honda and Toyota are among some of the major entities Takata is in debt to. Takata, one of the world’s biggest automotive suppliers, has been working for months to complete a deal with Key Safety. The company faces billions in liabilities brought on by manufacturing defective airbag inflators. A person briefed on the matter told Reuters that See Takata Bankruptcy, Page 14
Supreme Court Decision Delivers Patent Exhaustion Claim Benefiting the Aftermarket
volved the ability of Lexmark to restrict purchasers from reusing their printer cartridges or providing the used cartridges to anyone other than Lexmark. The Federal Circuit case determined patent holders can retain rights after sale as long as the restrictions on use are clearly communicated. “While the case applied to printer cartridges, the impact of the Federal Circuit decision would have been extensive, restricting the ability of companies to produce and sell aftermarket and remanufactured parts based on the fear of violating a car company’s See Supreme Court, Page 22
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In a major victory for the auto parts aftermarket industry, the Supreme Court upheld the legal precedent of patent exhaustion, which states that a company’s right to protect its patent ends when the product is sold to the end user, reports the Auto Care Association. Information from an amicus brief submitted to the Supreme Court by the Auto Care Association was used by Chief Justice John G. Roberts Jr. in reversing the Federal Circuit decision that would have been damaging to the manufacture and sales of aftermarket parts. The case, Impression Products, Inc. v. Lexmark International, Inc., in-
VOL. 8 ISSUE 4 JULY 2017
NACE Automechanika July 26–29, 2017 in Chicago by Autobody News Staff
Automechanika Chicago, the largest U.S. trade show dedicated to high-end technical and management-related training for automotive collision and service repair shops, along with NACE (the International Autobody Congress & Ex-
position), the premiere event for the U.S. collision repair industry, will combine forces starting this July in Chicago. The co-production between Automechanika Chicago and NACE is intended to create a unified stage using NACE’s strong relationships within the collision and OE community combined with Automechanika
Chicago’s global strength throughout the automotive aftermarket. Working in collaboration, the two entities will create an unprecedented partnership focused on training and product discovery for the automotive technicians, shop owners and parts distributors. A combined Automechanika Chicago and NACE show will take place July 26-29, 2017 in Chicago. Show hours: Wednesday, July 26 11:00 AM – 6:00 PM Thursday, July 27 11:00 AM – 6:00 PM Friday, July 28 11:00 AM – 4:00 PM Saturday, July 29 8:00 AM – 5:00 PM (Tabletop Exhibits, Focused Training)
A full training schedule is available at See NACE Automechanika, Page 21
Aftermarket Parts Industry Takes Aim at Restrictions on Sale and Use of Non-OEM parts
crash parts from 14 years to just 30 months. Earlier versions of legislation Federal and state legislation related to have had several House committee non-OEM parts was a key topic at the hearings since it was first introduced recent Automotive Body Parts Associin 2007, but never one in the Senate. ation (ABPA) convention. About 150 “Our mission now is to get this people, primarily representing manubill moving,” Nordwind said. “I can facturers or distributors of tell you eight or nine years non-OEM parts, attended the ago when we started lobbyevent, held in Atlanta. ing for this bill, no one knew what we were talking about. Lobbyist Will NordEverybody now knows what wind of the Quality Parts we’re talking about. We’ve Coalition told convention ateducated the Congress. And tendees that he hopes to see a first-ever Senate Judiciary now we need to get to the Lobbyist Will Committee hearing during next level, which is to move Nordwind of the Quality Parts the bill.” this Congress on the “ProCoalition He said he held about 20 moting Automotive Repair, Trade and Sales (PARTS) Act,” pro- meetings in late April with members posed federal legislation that would of Congress or their staff. “At each of those meetings, we slash the time that automakers can use were starting to hear that the car comdesign patents to prevent other companies from producing replacement See Restrictions, Page 40 by John Yoswick
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