Auto Service World
News   March 19, 2004   by Auto Service World

Ford, Licensses Agree on Reproduction Parts Trademarks

Acccording to SEMA (Specialty Equpment Market Association) an agreement has been reached concerning licensing arrangements for use of Ford trademarks on licensed
reproduction products. The agreement is the result of lengthy discussions between Ford Motor Company and members of the Automotive Restoration Market Organization (ARMO), the SEMA council representing the automotive-restoration segment.
Ford and ARMO members have been engaged in negotiations regarding the use of Ford trademarks and part numbers on reproduction parts for vintage Ford products, and the cost to use the trademarks. SEMA Chairman Corky Coker led the discussions.
The discussion about the licensing agreement involved a number of breakthroughs. First, Ford has agreed to provide a three-year contract to its licensees rather than the initially proposed one-year term. Second, all licensees will be given the same terms of agreement, without variation. Third, licensees will pay a seven percent (7%) royalty fee on the use of Ford trademarks and a fee of one dollar per part that bears a Ford trademark or Ford part number, up to a maximum of $1,000. Fourth, only one licensee in the distribution chain will have to pay the fee. If a manufacturer reproduces a part that is then sold by a retailer, only the manufacturer pays a licensing fee — the retailer will not have to pay.
Finally, no reporting requirement or fee is required if a Ford trademark is used only in an informational capacity, for example, in a catalog to describe a part application.
“We all acknowledge that Ford is entitled to protect its trademarks and other intellectual property, which are extremely valuable assets,” said SEMA Senior Director of Government Affairs Steve McDonald. “The Ford brand has been a major contributor to the nearly 100-year heritage of classic automobiles. However, Ford could not trade on this heritage without dedicated reproduction-parts makers and retailers. Their passion is to maintain and foster the Ford name by providing the same parts for these classic cars that we see at shows and on beautifully restored
vehicles on the road. Common sense and reflection on both sides have carried the day, and we are pleased that Mr. Coker was able to convey to Ford the concerns voiced by its reproduction-parts licensees.”

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