Proposed Legislation Could Force Release of Proprietary Information
BOSTON--(BUSINESS WIRE)--
The Massachusetts
Auto Coalition today announced that four major technology and
business organizations in the state – representing a combined 7600 major
employers and research institutions in Massachusetts – are opposed to
so-called “Right to Repair” legislation (H.102 / S.104). Associated
Industries of Massachusetts (AIM),
Massachusetts Biotechnology Council (MassBio),
Massachusetts Medical Device Industry Council (MassMEDIC),
and Massachusetts High Technology Council (Mass
High Tech Council) all oppose the bill out of concern that it could
weaken protections on and force the unrestricted release of intellectual
property, including patented technology, copyrighted software programs,
and trade secrets.
“Not only is ‘Right to Repair’ not needed, it carries a host of
unintended consequences that are bad for business in Massachusetts,
particularly industries that rely on legal protections for intellectual
property, trade secrets, copyrighted and confidential information,” said
Brad McDougall, Associate Vice President for Government Affairs of
Associated Industries of Massachusetts. “Passage of this bill could
result in a reduction of in-state investment by both global corporations
and homegrown firms, killing jobs and hurting Massachusetts’ growing
innovation economy.”
If successfully passed, H.102/S.104 would establish a precedent for
state legislation to narrow intellectual property rights in other
high-tech industries, such as pharmaceutical, biotechnology, medical
device, and computer software.
“While this legislation is directed at the automobile industry, it could
have implications on all companies involved in innovation and new
product development,” said John Heffernan, Vice President of Policy and
External Affairs for MassBio. “Our 600-plus members are investing
hundreds of millions of dollars in research and development,
commercializing new technologies and advancing new cures. This
legislation, if passed, could discourage such activities in the state if
protections on that investment are weakened.”
“The Mass High Tech Council works to strengthen the competitive
advantage of member companies and the regional technology economy,” said
Jim Rooney, Vice President of the Massachusetts High Technology Council.
“Right to Repair’s passage could impact other industries and harm
efforts to enhance cost-competitiveness, advance the transfer of
technology, and develop new education opportunities and talent that
currently sets Massachusetts apart from other states and economies in
the nation.”
Proponents of “Right to Repair” argue that Section 4 of the proposed
legislation addresses manufacturers’ intellectual property (IP)
concerns. However, the bill fails to protect patents, copyrights,
trademarks and other confidential information and could unreasonably
compel automakers to contractually divulge trade secrets to any “motor
vehicle owner” demanding access to them. If one “motor vehicle owner”
discloses an automaker’s trade secret to a third-party outside of a
confidentiality agreement, manufacturers lose the trade secret
protection Section 4 purportedly protects.
Further, if passed, the legislation would inevitably clog Massachusetts
courts with complex, costly and disruptive intellectual property
litigation. Automakers would be exposed to lawsuits from aftermarket
parts manufacturers seeking automakers’ intellectual property, and the
bill would force automakers and other industries to file costly lawsuits
to police the use of their patents, copyrights and trademarks.
Existing intellectual property laws already strike the proper balance
between what types of information companies should be entitled to
protect and what types of information should be made available to the
public, and existing federal and state laws already protect consumers
and businesses from unfair trade practices. H.102/S.104 would allow
aftermarket parts manufacturers to gain an unfair competitive advantage
over automakers by using automakers’ intellectual property to lower
their own engineering, research, development and production costs.
Similar “Right to Repair” legislation has been rejected in every other
state in which it’s been introduced, and the United States Congress has
failed to advance the proposal in every session since 2001. The Federal
Trade Commission, which protects consumers and businesses against unfair
trade practices, has objectively determined that “Right to Repair”
legislation is not needed.
About the Mass Auto Coalition
The Massachusetts Auto Coalition is an expansive group of automobile
industry organizations – including automakers, dealers, and independent
service and repair technicians – and local business, regional commerce,
labor, insurance, and law enforcement entities dedicated to explaining
why the so-called “Right-to Repair” legislation is wrong for
Massachusetts. Find out more at www.massautocoalition.org.
Massachusetts Auto Coalition
PJ Foster, 617-391–9650
pjfoster@rasky.com
Source: Massachusetts Auto Coalition
