Interpretation ID: nht87-1.70

TYPE: INTERPRETATION-NHTSA

DATE: 04/27/87

FROM: AUTHOR UNAVAILABLE; SIGNATURE UNAVAILABLE; NHTSA

TO: Mr. James E. Campbell

TITLE: FMVSS INTERPRETATION

TEXT:

Mr. James C. Campbell 2719 So. 29th Street Ft. Pierce, FL 33450

Dear Mr. Campbell:

This is in reply to your letter of December 17, 1986, in which you have asked the following question:

"If someone has a patent on an invention, as in the case of the turn signals, and you at the N.H.T.S.A. make it mandatory that all cars be equipped with that feature, does the inventor retain the marketing rights to that invention, or does he lose those rights once it becomes mandatory?"

The answer to your question is that rights given under a patent issued by the United States Patent Office cannot be divested by the actions of a governmental agency such as the N.H.T.S.A. Were we to require that a patented item of equipment be standard o n all passenger cars, the patent holder would retain all rights. However, it is important that you understand that the agency does not mandate the adoption of equipment of a proprietary nature. By law, the Federal motor vehicle safety standards are defin ed as minimum standards for motor vehicle performance; to the extent practicable the standards specify performance requirements to be met (e.g., no more than 5 ounces of fuel spillage in the first 5 minutes following a 30 mph frontal barrier collision), leaving the design solution to the manufacturer who may incorporate proprietary components if he chooses.

The performance requirements of our standards vary in their degree of specificity. In some instances the agency has had to develop fairly specific requirements to ensure uniformity and interchangeability of replacement equipment items such as brake hoses , tires, and lighting equipment. This can increase the likelihood of the incorporation of proprietary elements. Many of the changes which are made to the standards are made in response to petitions from manufacturers of motor vehicles or motor vehicle eq uipment. This is especially true in the area of motor vehicle lighting which is covered by Standard No. instances, a petitioner may request a change which incorporates specifications which are covered by a patent. In these cases, the agency endeavors to insure that the technology is made available on a non-exclusive royalty-free basis to all who wish to use it before amending the standard.

I hope that this answers your question.

Sincerely,

Erika Z. Jones Chief Counsel

Sir or Madam;

If someone has a patent on an invention, in the case of the turn signals, and you at the N.H.T.S.A make it mandatory that all cars be equipped with that feature, does the inventor retain the marketing rights to than invention, or does he lose those right s once it becomes mandatory?

Sincerely;

James E. Campbell