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Privileged & Confidential | Attorney-Client Communication ITI Environmental Leadership Council Fall 2018 Meeting Global Right to Repair & Planned Obsolescence Initiatives Stacey Sublett, Associate ● [email protected] October 2, 2018

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Privileged & Confidential | Attorney-Client Communication

ITI Environmental Leadership Council Fall 2018 Meeting

Global Right to Repair &

Planned Obsolescence Initiatives

Stacey Sublett, Associate ● [email protected]

October 2, 2018

Agenda

• Domestic Right to Repair Trends

− Rise of Right to Repair in the U.S.

− Current Status and Observed Trends

• Global Efforts Against Planned Obsolescence and Repair

− Europe

− Latin America

− Asia-Pacific

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U.S. RIGHT TO REPAIR

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Gained momentum in the U.S. via the

automotive industry.

In 2012 Motor Vehicle Owners’ Right to Repair Act

passed, requiring automobile manufacturers

to disclose repair information.

In 2014, automobile trade associations signed an

MOU to extend the MA law to all 50 states starting in

MY2018.

Requires original equipment manufacturers to provide diagnostic and repair information and

sell replacement equipment/parts/tools for their products to independent repair providers and customers.

U.S. Right to Repair - Electronics

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• Since 2014, advocates have proposed – via legislation and otherwise –application of right to repair to consumer electronics.

• Requires electronics OEMs to provide repair information and sell replacement equipment/parts for their devices to independent repair providers and customers.

• Modeled after Massachusetts Automotive Right to Repair Law.

• Bills have been considered in at least 18 different states, including Washington, Massachusetts, New York, Virginia, New Hampshire, and (most recently) California – though none have passed, yet.

Risks & Rewards: Key Arguments For & Against Right to Repair

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In Support In Opposition

Less expensive and potentially faster repairs

Risk of compromised product quality

Longer product lifespanRisk of compromised

product security

Flexibility for customization and recycling/reuse

Disclosure of proprietary information and IP

Encourages third-party competition

Ambiguity and implementation challenges

Key players in support of R2R:o The Repair

Associationo iFixito Electronic Frontier

Foundation

U.S. Right to Repair: Recent Developments

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• February 2018: Association of Equipment Manufacturers and Equipment Dealers Association Joint Industry Commitment

• July 2018: MA state Senate resolution calling for creation of commission to make recommendations to legislature on feasibility of right to repair laws.

• September 2018: California Farm Bureau and Far West Equipment Dealers Association MOU on diagnosis and repair of equipment without accessing/downloading propriety software or code.

• Momentum from Consumer Repair and Advocacy Groups

U.S. Right to Repair: Legal Tools for Advocacy

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Favoring Right to Repair

•April 2018 FTC warning to automobile and electronics companies for stating that consumers must use specified parts or service providers to maintain warranties.

•Red Lion Medical Safety et al. v. General Electric Company et al. (E.D.Tex.) – jury determination that OEM violated Sherman Act by restricting repair through policies and communications.

Countering Right to Repair

•Digital Millennium Copyright Act and criminalization of:

•Production and dissemination of technology, devices, or services intended to circumvent measures to control access to copyrighted work.

•Circumvention of access control, whether or not there is actual infringement of copyright.

GLOBAL EFFORTSTO COUNTER PLANNED

OBSOLESCENCE

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Global Trends: EuropeInitiatives, Legislation and Enforcement

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European Union

France AustriaBelgiu

mNorway Sweden

Global Trends: Latin AmericaInitiatives, Legislation and Enforcement

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Brazil Argentina Mexico

Global Trends: Asia-PacificInitiatives, Legislation and Enforcement

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China Australia

Summary - Looking Ahead:Trends to Watch

➢ Impact of Farm Equipment Agreements on Right to Repair

➢ Use of Consumer Protection and Antitrust Laws

➢ European Enforcement Trends

➢ Impact of EU Circular Economy and Eco-Design Initiatives

➢ Basel Convention Controls on Shipments for Repair

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Thank you!

Stacey SublettAssociate

Washington, DC

[email protected]

202.789.6074