Ford Settles Parts Dispute with LKQ

The automobile-parts recycler, LKQ Corp., has settled their dispute with Ford Motors Co.  The dispute had been filed by Ford over some of their design patents on collision parts, and according to Reuters, this agreement now makes LKQ the only distributor of copies of Ford’s replacement car parts.  The agreement extends through September 20, 2011, which is when Ford’s design patent expires.

More details of the agreement reveal that LKQ will pay Ford a royalty for each part they sell.  The companies also say that they will work together to stop infringement of Ford’s patents, while continuing to compete against each other.

Although I’m not sure as to the extent that these two companies will be able to compete while also protecting Ford’s IP, LKQ definitely seems like they are pleased with the agreement.  As Joseph Holsten, the Chief Executive of LKQ, said in a statement:

As the sole distributor of new non-original equipment aftermarket parts protected by Ford design patents, we will have the sole right to sell these parts in the United States for all of Ford’s models.