Keystone Loses Parts Appeal

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Generic automobile parts distributor Keystone Automotive Industries Inc. said Friday that the International Trade Commission has denied its appeal to continue importing after-market collision parts for Ford Motor Co. cars, trucks and sport utility vehicles.


An administrative law judge ruled in December the parts violated patents related to the Ford F-150 truck. Keystone subsequently appealed in March to the United States Circuit Court of Appeals for the Federal Circuit, which denied the claim.


“The International Trade Commission’s determination was not surprising and we intend to vigorously defend our position on behalf of our shareholders and consumers,” said Chief Executive Rick Keister in a statement.


Keystone makes and distributes generic auto collision repair parts, which are often similar in quality and can cost as much as 30 percent less than original parts made by the automakers. Ford and other companies have said that copying their parts design infringes on patents the companies hold on those parts.


However, Keister said the parts in question comprised about 0.1 percent of the company’s annual sales in fiscal year 2007.


Shares in Keystone gained 37 cents to $39.95 in afternoon trading Friday on the Nasdaq.

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