Apple Hardware Rentals

What happens if Apple no longer sells cell phones and rents them instead?  Not much.  For years the cell carriers rented hardware by the month on a multi-year contract, and consumers weren’t horribly upset.   So long as Apple continues to force customers into regular replacements – the rental concept is more honest than the pretense of a sale without having the advantages of ownership. 


We’ve argued for years that a company that demands total control over their assets should not sell those assets in the first place.  Retaining ownership is essential to having full control.  But retaining ownership has accounting implications for Apple, that might not be so advantageous. 


Apple sells equipment and then reports their revenue based on the full sales value minus an accrual for their anticipated costs of fulfilling their warranty obligations.   Wall Street is devoted to seeing top-line revenue growth, and a rental or lease plan different from an account perspective.  This might not be helpful to stock pricing even if it is preferable over the long term. (“Long-term” meaning more than one quarter of a year. :) 


Rentals and not sales also keep Apple on the hook for more than revenue recognition.  Apple as the equipment owner retains responsibility for how equipment is used, or abused, or neglected or even used in crimes.  These are the dark side of ownership.  Apple has avoided the unhappy side of being the owner while commanding ownership control through unfair and deceptive contracts -  which is clearly a topic of discussion among lawmakers.  Apple has been having their cake and eating it too – which appears to be coming to an end through Right to Repair legislation. 


Personally, I think Apple will do very well to rent and not sell their phones.  Consumers may feel differently – but they should have the option to either own and control their purchases, or to rent them and not control them. 


It’s time for Congress to hold a Right to Repair hearing

If it has a microchip in it, chances are, there are issues fixing it. Our members -- from repair, refurbishing and recycling businesses across every industry -- have been raising the alarm about how manufacturers are pushing to monopolize repair of everything from appliances, to farm equipment, to servers and routers and even hearing aids. 


As we’ve built momentum for the Right to Repair across the country, supporting bills in 40 states, we believe it’s time for Congress to get off the sidelines. 


Yesterday, March 16, the Repair Association, along with more than 50 different organizations, sent a letter to House Judiciary Committee Chairman Jerry Nadler, Ranking Member Jim Jordan; Subcommittee on Antitrust, Commercial, and Administrative Law Chairman David Cicilline, Ranking Member Ken Buck; and Subcommittee on Courts, Intellectual Property, and the Internet Chairman Hank Johnson, and Ranking Member Darrell Issa calling for the full House Judiciary Committee to hold a hearing on the Right to Repair. The letter includes signatures from trade associations, small businesses, public interest groups, environmental advocacy organizations, and agriculture groups. 


Congress is weighing a number of bills on the subject, including Senator Ben Ray Lujan’s bill introduced earlier this week (S 3830). The Repair Association needs the Judiciary Committee to weigh in, especially on Representatives Mondaire Jones and Victoria Spartz’s Freedom to Repair Act (HR 6566). This bipartisan bill is currently referred to the House Judiciary Committee because it seeks to amend Section 1201 of the Copyright Act to allow for repair, diagnosis, and maintenance.


In our letter, we explain to Congress that:


“Companies that make products from tablets to tractors are using an oversight in copyright law to deny us the right to repair our own devices or take them to local small businesses. 17 U.S.C. § 1201 (known as “Section 1201”) is designed to protect copyrighted works from piracy and makes it a crime to bypass a digital lock set up to protect copyrighted content like music, video games, or movies. But some manufacturers have exploited that provision to lock consumers into their own expensive, inaccessible repair services by locking repair functions, too.”


Hopefully, the groundswell of support on the Right to Repair motivates these Members of Congress to schedule this hearing and ultimately pass the Freedom to Repair Act. 


You can read the full text of the letter here.

High Availability Farming

Deere & Company is stating that tractors are like aircraft in their complexity. I laughed at the thought of a flying tractor. But apart from the visual joke, the analogy makes Deere’s repair restrictions seem even more absurd.

Modern tractors are full of computers, just like aircraft, cars, and data centers. Putting a computer chip in a tractor doesn’t make it fly like an aircraft but does make it function just as a mainframe computer with multiple controllers and peripherals in a data center. Keeping that equipment up and running is a critical part of design as every farmer, pilot and computer geek knows.

In the computer industry as with aircraft, uptime—aka “High Availability”—is essential. Yet Deere has been building products using hundreds, if not thousands, of parts, any one of which is a single point of failure, and then tying the replacement of those parts to their exclusive control. Every delay created by this service model becomes a critical issue for farmers.

Aircraft are full of redundant sensors for this very reason. Data center storage is “redundant,” “hot swappable,” and “plug and play”—techniques that have allowed for the exceptional uptime that we have come to expect in the air and online. Despite the opportunity to learn from both the airline industry and data center computing, Deere has designed equipment using hundreds of small sensors without building the redundancy needed for producers to keep rolling in the event of a component failure.

When challenged by proposed legislative requirements, Deere tries to minimize their computer repair problem by stating that farmers can already fix 99% of their stuff—even when a single part can take the machine down by 100%. We know from Deere in legislative hearings that their admitted limitations are only on the “digital stuff,” which means that all of the failure and repair problems of computers (the “digital stuff”) are the big hangup for tractor repair.

Deere then argues that farmers can buy everything they need, but in practice, even if a farmer buys all the diagnostic subscriptions, buys the part, and has the tools to install the part, the final step to activate the part is monopolized by Deere. Deere firmware can only be installed and activated by a Deere Dealership tech, using firmware updates created by Deere specific to each serial number, creating the potential for massive delays and manipulation of service availability to reward larger customers.

Nor does Deere inform their customers that many of their computerized parts don’t work as spare parts without the specific intervention by Deere to activate the part in their system. When it comes to repair of farm equipment, if any step in the process is slow—, including simple supply chain shortages, weather, labor shortages, and so forth— – then farmers cannot farm. Waiting on a Deere tech to activate a part can be “harvest is ruined” slow.

If tractors are like aircraft in their complexity, it’s only because of their embedded computers. But data centers solved the uptime problem a long time ago, and they didn’t need to restrict repair to do it. In the early days of corporate computing in the 1960s, data center managers had repair techs on site 24 x 7 with a full suite of repair manuals, parts and tools. This is akin to a farmer having a barn full of everything needed to repair and a Deere tech living in the barn. The next innovation from the 1960s and 1970s was to buy a second full set of everything, which would be activated in the event of the main system failure. This is the same as buying two tractors, or having a stand-by tractor just in case.

Sound familiar? It should. Deere’s repair restrictions are forcing farmers to rely on backup tractors in exactly this way. But data centers moved beyond this system forty years ago, because it’s expensive and imperfect (what if your backup goes down, too?). Among the many innovations from the 1980s that made for easier and more efficient repair was the addition of call-home functions from the equipment itself. If a sensor detected high heat (a common problem) the machine itself could call the service provider with an alert. The repair tech could then be dispatched already knowing the diagnosis and prepared with the part needed. These functions were telephone based, pre-internet, and worked as reliably as Ma Bell could provide.

This innovation let data center manufacturers begin to offer service agreements that were time-specific and bound the provider to arrive within a short time frame, including penalties for late or incomplete repairs. Surely some dealers might benefit from offering similar programs for those willing to pay. The idea that a Deere dealership can simply show up when it is convenient for them seems horrifyingly archaic from a data center or aircraft perspective.

Even with such a simple model to follow, Deere has decided to use the internet for communications, all while knowing that much of farmland is not covered by reliable broadband and that disruptions of internet service would have profound consequences for repair. I suspect the choice of internet communications is based on Deere harvesting operational data for their own purposes and not for service delivery.

High-availability computing is normal and it has not led to theft of IP, lack of safety for technicians or customers, nor any other of the ridiculous excuses being made by OEMs to deliberately keep high-tech farming from fulfilling its potential.

Deere wants to say tractors are like airplanes? Sure, they’ve got complex computer systems. But that’s no excuse for keeping those tractors from flying the friendly skies.

Why is John Deere so opposed to letting farmers fix their stuff?

John Deere is trying to block the agricultural Right to Repair in Nebraska—which affects all of us, not just farmers. When farm equipment goes down in the middle of the season, it can cost farmers a harvest and the rest of us a meal. Everyone that eats has a horse in this race. 

And Deere is rigging the race. They have filled Nebraska’s unicameral legislature with their proxies attempting to block the passage of LB543, the Right to Repair for Agricultural Equipment. They are telling senators that Deere & Co. supports farmers repairing their equipment, but they don’t support the “right to modify” When pressed, they proclaim that farmers can already fix 98% of their equipment, so there isn’t a problem for legislators to address.  

Hogwash. Within the supposed 2% of repairs that Deere blocks are many problems that can take a machine down 100%. Fixing 98% of something rather than 100% is a farce.  Limp mode can be a death sentence for a crop. when a simple problem during key times takes the machine down 100%, not 98%. 

Plus, repair is not modification. Most farmers have no interest in doing anything with their tractor beyond the job it was designed to do—they just want it to be in good working order. So why is Deere bending the ears of nearly every Nebraskan senator, to keep farmers away from 2% of repairs? Why are they fighting 5 antitrust lawsuits ? What is Deere protecting so fiercely? 

It's likely that the answer is just money—hidden in all sorts of pockets in plain sight.  Repair in many industries is a high margin business, and monopolies on repair feed the margins.  A Virginia dealer told Farm Equipment magazine that service accounts for three times the net profit of equipment sales, even though it makes up just a sixth of equipment sales’ gross profit. 

Subscription revenue for Deere’s proprietary “Service Advisor” diagnostic software is undoubtedly high—one dealer sells the package online for $8500 for the first year (note the emphasis that this subscription provides diagnostic codes but will not authorize farmers to repair their own equipment). Without the ability for a farmer to buy an alternative set of diagnostic tools, it’s also a monopoly.  I suspect, as a former lessor, that Deere influences the used market for trade-ins around the world.

Not to mention that keeping repairs in house gives Deere a lock on data being harvested from every piece of equipment in real time. Many credit Deere’s stock rebound during the pandemic to their investment in “smart farming” equipment, including planters that pick the best spot to stick seeds based on past yields, and sprayers that have weed-destroying algorithms.  Blocking agricultural Right to Repair lets Deere keep a monopoly on the data that their new Chief Technology Officer manages.

Farmers want to use the modern tools that have so much promise to improve yields and reduce labor costs. But while Deere reaps the profits of these tools, farmers are left holding the bag. For the sake of a repair and data monopoly, Deere is happy to pay lobbyists and lawyers. They’re happy to ignore some angry farmers. That anger, though, is justified: When a farm must wait weeks for a Deere repair technician, that can mean a lost harvest—and a lost harvest can mean a lost business. 

It’s up to all of us—the farmers and the eaters—to make sure that farmers are restored true ownership of their equipment so that they can keep their equipment working 100% of the time, not just 98%. They’ve bought their tractors. Why can’t they repair them? Tell your legislators anywhere in the world that you want them to pass Right to Repair legislation now.

Digital Right to Repair Coalition Letter of Support - House

The House Committee on the Judiciary

2141 Rayburn House Office Building

Washington, D.C. 20515


Dear Members of the House Committee on the Judiciary,


On behalf of the Digital Right to Repair Coalition (“The Repair Association”), an organization representing over 400 member companies across a variety of industries, I’m writing to ask for your support of consumer choice and right to repair by advancing H.R.3664 – Save Money on Auto Repair Transportation (SMART) Act. The Repair Association is centered around a simple principle: consumers should have the right to repair the products they own. We believe that competition is an essential component of any market, including automotive repairs, and is better for consumers. We are dedicated to fighting against anti-competitive practices that stifle innovation, restrict small businesses, and disadvantage consumers, regardless of industry.


Right to repair is a growing, consumers-first movement that is expanding as more people recognize that the law should put consumers first. Growing momentum around repair restrictions for electronics and consumer appliances has spurred companies like Microsoft and Apple to commit to take action to expand their repair offerings. There’s much more work to be done.  According to a new national survey from the CAR Coalition, an overwhelming majority (78%) of vehicle-owning voters support federal right to repair legislation that protects against design patent abuse in the automotive industry, such as the SMART Act, and makes vehicle data more readily available. The Repair Association believes the SMART Act is an essential step forward in answering consumers’ call for stronger right to repair protections in the automotive repair industry and would serve as an example to other industries. 


We have seen similar practices deployed that block the repair of consumer electronics, such as design patents limiting access to common parts such as replacement glass and batteries for cell phones. Lack of competition for these common parts is a leading reason why consumers are buying replacement products – instead of seeking repairs – to the detriment of owners’ rights and sensible environmental policies governing e-waste. We believe the trend toward more limitations on repair will continue without congressional action. 


The SMART Act is a bipartisan bill that will remedy many of these issues by restoring consumers’ right to choose how and where to repair their vehicles. This legislation would make necessary amendments to U.S. design patent law to limit the period in which automakers can enforce design patents against alternative parts manufacturers from 15 years to 2.5 years. Even further, the SMART Act will ensure everyday Americans have access to affordable car repairs. 


While OEMs will still control the vast majority of their parts’ availability within the warranty period and not lose the design value associated with those parts, legislation is needed to enable the secondary parts market to serve the needs of post-warranty repairs in an open market.  We would want the same to apply for design patents not only in the automobile industry, but for every industry. 


Thank you for your consideration and hard work in serving American citizens. 


Sincerely,


Gay Gordon-Byrne

Executive Director, Digital Right to Repair Coalition

Digital Right to Repair Coalition Letter of Support - Senate

The Senate Committee on the Judiciary

224 Dirksen Senate Office Building 

Washington, D.C. 20510


Dear Members of the Senate Committee on the Judiciary,


On behalf of the Digital Right to Repair Coalition (“The Repair Association”), an organization representing over 400 member companies across a variety of industries, I’m writing to ask for your support of consumer choice and right to repair in the automotive industry by introducing legislation that combats anti-competitive practices, like design patent misuse. The Repair Association is centered around a simple principle: consumers should have the right to repair the products they own. We believe that competition is an essential component of any market, including automotive repairs, and is better for consumers. We are dedicated to fighting against anti-competitive practices that stifle innovation, restrict small businesses, and disadvantage consumers, regardless of industry.


Right to repair is a growing, consumers-first movement that is expanding as more people recognize that the law should put consumers first. Growing momentum around repair restrictions for electronics and consumer appliances has spurred companies like Microsoft and Apple to commit to take action to expand their repair offerings. There’s much more work to be done. According to a new national survey from the CAR Coalition, an overwhelming majority (78%) of vehicle-owning voters support federal right to repair legislation that protects against design patent abuse in the automotive industry, such as the Save Money on Auto Repair Transportation (SMART) Act (H.R. 3664), and makes vehicle data more readily available. The Repair Association believes federal right to repair legislation is an essential step forward in answering consumers’ call for stronger protections in the automotive repair industry and would serve as an example to other industries. 


We have seen similar practices deployed that block the repair of consumer electronics, such as design patents limiting access to common parts such as replacement glass and batteries for cell phones. Lack of competition for these common parts is a leading reason why consumers are buying replacement products – instead of seeking repairs – to the detriment of owners’ rights and sensible environmental policies governing e-waste. We believe the trend toward more limitations on repair will continue without congressional action. 


Legislative protections are needed to ensure car repair market competition and safeguard consumer choice around quality, affordable car repairs. It’s time we amend U.S. design patent law to limit the period in which automakers can enforce design patents against alternative parts manufacturers from 15 years to 2.5 years. 


While OEMs will still control the vast majority of their parts’ availability within the warranty period and not lose the design value associated with those parts, legislation is needed to enable the secondary parts market to serve the needs of post-warranty repairs in an open market. We would want the same to apply for design patents not only in the automobile industry, but for every industry. 


Thank you for your consideration and hard work in serving American citizens. 


Sincerely,


Gay Gordon-Byrne

Executive Director, Digital Right to Repair Coalition

This Week in Right to Repair

Right to Repair legislation is clearing new milestones as never before.  We are 4 for 4 in committee hearings so far this year. MA, NE, MN and WA are moving ahead in the legislative process with increasingly strong support.  

More legislation was officially filed this week as well.  Georgia filed a comprehensive Right to Repair bill, Maryland did the same. Colorado filed a wheelchair right to repair measure and Michigan added their efforts for farmers.  This brings the total number of states with active legislation to 21 – far ahead of our expectations in what is normally an “off” year. 

Also new this week are several new federal efforts that have been in the works for several months.  Rep Mondaire Jones (D-NY) and Rep Victoria Spartz (R-IN) teamed up in a  non-partisan effort intended to remove the last lingering copyright office limitations on repair and repair tools.   

Montana Senator Jon Tester filed his “Agricultural Right to Repair Act” at the same time as 

Rep Bobby Rush (D - IL) filed his Right to Equitable and Professional Auto Industry Repair (REPAIR)  

Rep Joe Morelle (D-NY) continues to gather supporters for his general Right to Repair legislation filed in the fall covering all the stuff not otherwise covered by the Jones and Tester bills. 

It’s been a wonderful week – and we hope momentum continues to build so that state law will be enacted to allow us all to fix the things we buy – even if they happen to include a computer chip. 

Gay Gordon-Byrne
Executive Director
The Repair Association

Digital Right to Repair Coalition Letter of Support: SMART

January 19, 2022

The House Committee on the Judiciary 2141 Rayburn House Office Building Washington, D.C. 20515

Dear Members of the House Committee on the Judiciary,

On behalf of the Digital Right to Repair Coalition (“The Repair Association”), an organization representing over 400 member companies across a variety of industries, I’m writing to ask for your support of consumer choice and right to repair by advancing H.R.3664 – Save Money on Auto Repair Transportation (SMART) Act. The Repair Association is centered around a simple principle: consumers should have the right to repair the products they own. We believe that competition is an essential component of any market, including automotive repairs, and is better for consumers. We are dedicated to fighting against anti-competitive practices that stifle innovation, restrict small businesses, and disadvantage consumers, regardless of industry.

Right to repair is a growing, consumers-first movement that is expanding as more people recognize that the law should put consumers first. The growing momentum around repair restrictions for electronics and consumer appliances has spurred companies like Microsoft and Apple to commit to taking action to expand their repair offerings. There’s much more work to be done. According to a new national survey from the CAR Coalition, an overwhelming majority (78%) of vehicle-owning voters support the federal right to repair legislation that protects against design patent abuse in the automotive industry, such as the SMART Act, and makes vehicle data more readily available. The Repair Association believes the SMART Act is an essential step forward in answering consumers’ call for stronger right to repair protections in the automotive repair industry and would serve as an example to other industries.

We have seen similar practices deployed that block the repair of consumer electronics, such as design patents limiting access to common parts such as replacement glass and batteries for cell phones. Lack of competition for these common parts is a leading reason why consumers are buying replacement products – instead of seeking repairs – to the detriment of owners’ rights and sensible environmental policies governing e-waste. We believe the trend toward more limitations on repair will continue without congressional action.

The SMART Act is a bipartisan bill that will remedy many of these issues by restoring consumers’ right to choose how and where to repair their vehicles. This legislation would make necessary amendments to U.S. design patent law to limit the period in which automakers can enforce design patents against alternative parts manufacturers from 15 years to 2.5 years. Even further, the SMART Act will ensure everyday Americans have access to affordable car repairs.

While OEMs will still control the vast majority of their parts’ availability within the warranty period and not lose the design value associated with those parts, legislation is needed to enable the secondary parts market to serve the needs of post-warranty repairs in an open market. We would want the same to apply for design patents not only in the automobile industry but for every industry.

Thank you for your consideration and hard work in serving American citizens. Sincerely,

Gay Gordon-Byrne
Executive Director, Digital Right to Repair Coalition

Biden Administration Launches Right to Repair for Agriculture - What does that mean for OEMs?

Point/Counterpoint Discussion with Gay Gordon-Byrne, Executive Director of Repair.org, and Willie Cade - Midwest Regional Director — Repair.org.

The leading trade association for the AG industry is the Association of Equipment Manufacturers (AEM) and their dealership counterparts the Equipment Dealers Association (EDA) Both have made public statements offering support with significant caveats -- which is a window into the core of their aggressive opposition to proposed legislation. 

Here are the main loopholes in their “support” statements:

We support farmers’ right to repair, but not their right to modify. 

Gay: The most obvious flaw in the statement, which the FTC Report to Congress on “Nixing the Fix”  noted is that repair isn’t modification.  Legislation directed at opening a competitive market for repair does not require modification and the FTC concurs. 

Willie: The FTC also noted that IP rights are not impacted by repair.  I think it's more telling that AEM and EDA both consistently fail to acknowledge the rights of owners of “land-based motor vehicles” to modify their software already granted in Copyright Law with the 2015 exemptions to Section 1201. ([link] 

Farmers can fix 98% of their stuff  

Gay: So much to unpack here.  First -- we don’t see any disclosure to farmers about which parts are off-limits to repair -- which is inherently unfair and deceptive.  Second -- and I think most importantly - farmers paid 100% for the product and logically expect to be able to fix 100%.  Third -- my inner cynic thinks that the 2% figure is a fabrication intended to backstop the idea being presented to legislators that there isn’t a need for legislation because there isn’t a problem any longer.   

Willie:  Plus a partial repair isn’t a complete repair. And if a product is down for a dealership visit -- that machine is 100% useless until the dealership can visit and complete the repair. We’ve been trying to get a handle on the limitations on repair directly from farmers, and our sense is that limitations on repair are far more pervasive than disclosed.  

Imagine if your car check-engine light flashes, and instead of being able to continue to drive the car shuts down entirely.  Maybe you can limp at 2 mph to a mechanic that can plug in a diagnostic tool and learn that your front headlight needs replacement.  But that mechanic can’t replace the light because only the dealership has the software tool that pairs the bulb to the VIN.  This is exactly the problem farmers face every day when a small part, even a relatively trivial part, takes the machine down.

If Right to Repair passes, farmers will hack the emission on their equipment and violate the Clean Air Act

Gay:  I’ve dug into the Clean Air Act and read compliance advice from the EPA.  I don’t see any requirements that OEMs or Dealerships are deputized to enforce the law.  There is a requirement on dealers to bring emissions back into spec if the equipment is brought to them for an emission repair -- but the EPA very clearly states the dealership doesn’t have to fix emissions if the repair request is unrelated. (https://www.epa.gov/enforcement/clean-air-act-vehicle-and-engine-enforcement-case-resolutions)

Lately, the EPA has come down hard on diesel tuners for over-the-road trucks (https://www.epa.gov/newsreleases/epa-penalizes-premier-performance-3-million-selling-defeat-devices) as evidence that they do enforce violations directly with the violators.  The schedule of fines for users is very clear as well.  Farmers that hack their emissions are subject to fines directly. 

Willie: Damn straight, OEMs are not the environmental police!  To say that producers are all “criminals in waiting,” is BS!.  It is insulting.

Trade in Values will be diminished if farmers mod their engines to run at higher Horsepower.

Gay: This is simply wild. The farmer, as the owner making the trade-in or private sale, is the only party that benefits or loses value based on equipment condition.  Dealerships should be taking equipment conditions into account when making an offer -- just like a car dealership evaluates the trade value.  If Dealers aren’t savvy enough to pick up on mods, that's on them.  If the tools to evaluate conditions are inadequate -- then dealers should be asking for better tools. 

Willie: Deere created the one machine series with firmware-controlled settings.  The machine itself is built to run at the max settings, so it's not going to hurt the machine if the farmer goes to the max.  This is a pricing problem for Deere and not a technical one. 

Are producers really upset about this issue?

Gay: Producers are livid about any limitations on repair. Why not just let the farmer buy the pairing tool and the parts?  Is there that much money to be made on repair? 

Willie:  There is a great deal of money to be made on repair.  IBISWorld estimated repair spending in the U.S. in 2018 at $39.1 billion for heavy machinery.  Now that agricultural equipment has been “computerized,”  what has been for generations a repair industry composed of small, independently run operations now is controlled by OEMs via software.  This represents a high margin growth opportunity.  Even the OEM’s dealers are having to fork over more money and they are not happy about that!.  This problem is only going to get worse as the percentage of computerized equipment in a producer’s fleet increases. 

Is this really all about the price of their stock?

Gay and Willie:  OF COURSE!


I Heart New York

New York did what no other state has done so far -- passed a comprehensive Right to Repair measure through a legislative body.  Unlike victories for Medical Equipment in the Arkansas Senate and several bills that advanced through committee -- this is the first that included all Consumer Electronics, Home Appliances and Farm Equipment.  The biggest of the tech titans did not persuade the Senate that their repair monopolies were justified.  

The FTC Report of May 6 solidified confidence among our supporters that they are doing the right thing for New York.  They are still supporters and will continue to be supporters. The process issues that slowed us down throughout the session will not re-occur in January.  

Looking ahead, the legislature will probably be able to operate in person.  The NYC Mayoral primary will be behind us and take a lot less mind-share. We’ll have 6 months to work through any particular reservations among any staff or legislators.   If another state doesn’t finish the job by January, the NY State Legislature will. 

Elsewhere - momentum is building.  We know there are repair-friendly bills being filed in Congress. The FTC has promised more engagement, the DOJ has indicated a willingness to engage in anti-trust enforcement.  The US Copyright Office is expected to renew or expand exemptions for repair.   Regulations around the world are coming into play -- adding new impetus for more repairable designs, less tolerance for repair monopolies, and better terms and conditions for buyers. 

The NY Senate proved that our vision of a consistent application of consumer protection law is necessary and well-considered. Others considering the same principles can now stand on the shoulders of the NY Senate and move forward confidently.

We’re going to get this done for the world.


New York State Senate gears up for landmark Right to Repair vote

Buckle up, this is a big moment for Right to Repair: New York State Senate Bill S4104 heads to the floor for a full chamber vote next week. 

It is likely that this coming Tuesday, June 8, will be the first time that legislators get a chance to vote to make repairs more accessible for things such as cell phones, appliances, computers and refrigerators.    

Earlier this year, we helped advance bills to the floor covering farm equipment in Montana and medical devices in Arkansas. But S4104 is the first bill that covers devices made by Big Tech, and therefore has to deal with opposition from the biggest companies in the world. 

After the Senate votes, attention will shift to the Assembly, where A7006, the identical Assembly sister bill to S4104, sits ready for action. Time is short. The New York session ends on June 10, unless it is extended.   

There is no time to waste. New Yorkers: Tell your legislators about your support for your Right to Repair. You can bet they are hearing from plenty of lobbyists representing manufacturers, but they need to hear from you.  

You can email your senators at https://newyork.repair.org/ -- but the best way to make an impact is to use our phone tool. Enter your phone number and Zip Code, and our tool will call you and patch you into your Senator’s office. 

 

 


A Canadian Right to Repair bill sees 330-0 vote, as measure clears key hurdle

Everywhere you go, people just want to fix their stuff. 

On June 2, Canada’s Parliament voted unanimously upon second reading (330 – 0) in favour of Bill C-272. The Private Member’s Bill, put forward by Liberal MP Bryan May (Cambridge), targets technological protection measures (“TPMs”) under Canada’s Copyright Act. 

TPMs or digital locks can be physical connectors, encryption, or firmware restrictions on the use of replacement or aftermarket parts. These locks can even restrict access to basic information needed for diagnosis of faulty equipment or devices and can present a meaningful barrier to repair. 

TPMs have been a central Right to Repair issue for many years now in Canada and elsewhere. In the U.S., Repair.org members iFixit and EFF (along with many other advocates) have pressed for and won exemptions to U.S. Copyright law to allow bypassing digital locks in certain devices for repair purposes. But Canada’s copyright framework does not allow case-by-case exemptions in this way. MP Bryan May’s bill seeks to finally tip the copyright scales in favour of repair by carving out a blanket repair exception right in the Copyright Act itself.

TPMs can be a significant inhibitor to independent repair because circumventing them can result in large damage awards if brought before a court. The Canadian Federal Court’s 2017 decision in Nintendo v King revealed that unlawful circumvention of TPMs under Canadian law would be treated seriously and manufacturers will receive the protection of heavy-handed, multi-million dollar damages awards. 

Bill C-272 was introduced for first reading in February of this year and has since moved along through the usual parliamentary process. Throughout the debates and discussions among parliamentarians since, it has received overwhelming support across party lines and bridged the rural-urban divide. Despite his government’s current minority status and the usual eagerness of parliamentarians to politicise reform efforts in these circumstances, May’s bill has been noticeably uncontroversial and above normal partisanship. 

For repair advocates in Canada, it will be a race to get the bill to the finish line before new elections are called. The C-272 will now be referred to the Industry Committee for further consideration and amendment. 

Speaking before Parliament on 2 June 2021, MP Bryan May explained why a clarification of the scope and purpose of TPMs is needed in this case: “I hope that this legislation kicks off a deeper conversation about the Right to Repair…the Copyright Act is being used and interpreted in areas far beyond its scope.”

Indeed, that deeper conversation might be the real test of this bill’s mettle. With a history of lobbying efforts quashing pro-repair reforms in Canada already, there is enough precedent to reason that large manufacturers will not pass up the opportunity to shape this conversation more in their direction. 

Right to Repair is a growing movement in Canada -- as Bill C-272 shows. Though more reforms would be needed truly give Canadians a Right to Repair, this bill may be the catalyst that sets this bigger series of reforms into motion. For a start, 330-0 certainly sends a strong message. 

By Anthony Rosborough. Anthony is an intellectual property lawyer, researcher at the European University Institute and a member of Repair.org. Much of his work focuses on the right to repair in Canada and beyond. 


FTC Affirms Right to Repair is Right for Consumers

In a comprehensive rebuke of opposition arguments to Right to Repair, the Federal Trade Commission (FTC) found “scant” evidence that repair should be restricted. The FTC studied the evidence and found next to nothing, except a single report of a battery fire in 2011 in Australia. One cell phone fire among billions for a ten year period is indeed “Scant.”

Repair.org members were asked to testify—and we can all attest the thoroughness of the process. It is pure joy to see that our words were heard and that our arguments were persuasive. With 19 months of silence we’d no expectations of anything positive. 

The most exciting result of this report is the clear endorsement of state right to repair legislation as a suitable path forward. The path to passage in multiple states now appears wide open. 

The next few months will be very telling. OEM arguments against Right to Repair have been obliterated. If OEMS do not change their policies voluntarily, it appears the FTC is prepared to push forward using their existing authority. They may even engage in a formal rulemaking. At the same time, legislation that has been moving slowly in state legislatures has been invigorated. Had this report been available in January, several states with short sessions may have already passed “Right to Repair” laws by now.

The report runs 56 pages with extensive footnotes. Here is a brief summary: 

  • Limitations on repair constitute illegal tying agreements under the Magnuson-Moss Warranty Act, and can be pursued. 

  • Software locks are a form of unfair competition and tying.

  • No evidence that OEM techs have superior training or skill.

  • No evidence that independent technicians entering homes are any more, or less, of a safety risk than a branded tech.

  • No evidence of reputational harm (brand image) or increased liability as the result of independent repair. 

  • Rejected arguments offered by AEM about potential modification of emissions systems as being “inapposite” as repair is not modification. 

  • Rejected the idea that consumers should not be allowed to replace batteries. They affirmed that unsafe designs aren’t an acceptable reason to block repair, and further stated that better labelling and provision of repair instructions would be in the best interest of consumers. 

  • No evidence that cyber security risk is associated with repair. 

  • No evidence that data security risk differs between branded and independent technicians. 

  • The Commission agreed that lack of repair options increases costs to consumers. 

  • The Commission did not argue points of IP law (not their specialty) which is a bit of a punt then stated they didn’t see a conflict. 

  • The Commission pointed out that repair manuals are unlikely to contain trade secrets. They also point out that proposed legislation specifically exempts trade secrets. 

  • The Commission did not buy CTA’s argument that e-waste is declining and agreed that repairing more things is “harmonious” with the objectives of the EPA. 

  • The commission did not agree that allowing independent technicians to acquire service materials would damage existing businesses.

Read the press release and the report in full at this link: https://www.ftc.gov/news-events/press-releases/2021/05/ftc-report-congress-examines-anti-competitive-repair-restrictions

25 States are now considering Right to Repair legislation

Right to Repair bills now in half the US


Right to Repair legislation has now been filed in 25 states, proving that our campaign has continued to expand support steadily since our first effort in 2014. Bills are in big states, small states, cold states, warm states and have been filed by Republicans and Democrats alike. Many of our bill sponsors have teamed with their counterparts across the aisle because repair is something we all need.


Manufacturers should note, if they haven't already, that these bills aren't going away. They come back stronger each year. The day of reckoning is coming, perhaps this year.


The time for manufacturers to give up on repair monopolies is now, while there is marketing and advertising value. The first manufacturer coming out in support of Right to Repair will get the press - the 9th won't even generate a mention.


Being on the right side of repair also legitimizes manufacturer claims on circular economy and the environmental. Savvy customers will pay more for products that last -- and the total cost of ownership always includes the costs of repairs. We call on manufacturers to drop their opposition to their own customers and fight with us for legal rights to fix the things we buy.


The world is watching.

Introducing: CES Worst in Show Awards

iFixit joins USPIRG and Repair.Org for the first annual Worst in Show Awards. #CES2021 is off and running, and so are the claims of life-changing technology....

CES, the self-described “global stage for innovation,” gives manufacturers an annual opportunity to show off shiny new tech, whether it’s fridges you open with your voice, AI-powered robot vacuums, or $3,000 smartphone-operated doggie doors. Some of it could be life-changing stuff. But many products never see actual release, those that do often fall short—and far too many of them are insecure, unrepairable, and destined for the landfill. 

Every year CES encourages manufacturers to out-“innovate” one another by honoring “outstanding design and engineering in consumer technology products” with its Innovation Awards … and boy do they innovate. While the press does their best to raise their eyebrows and ask whether anyone will really buy these things, there’s never enough time to dig into what these “innovations” really mean for people or the planet.

That’s why the Right to Repair coalition teamed up to create the first-ever “Worst in Show Awards.” We think consumers should know which attention-seeking products were designed to be repaired, and which are destined to become hard-to-dispose waste, especially in a year when so many OEM service centers were closed and repair options were limited. We’ll also, with the help of our friends, draw attention to the least secure, least privacy-conscious, and straight-up least useful products introduced this week under the pretense of endless “innovation” (read: consumption).


We’ve defined six award categories for the Worst in Show Awards:

wis-thumbs-repairability-trans.png
 
wis-thumbs-privacy-trans.png
 
wis-thumbs-security-trans.png
 
wis-thumbs-environment-trans.png
 
wis-thumbs-community-trans.png
 
wis-thumbs-worsti-trans.png

Repairability

A failure of repairability isn’t just a bummer for fixers, it means this product is sure to waste its resources mouldering away in a landfill.


Privacy

This award goes to the device most likely to leak your home security footage, baby photos, or just get you some alarmingly too-targeted ads.


Security

Voted most likely to be a zombie in a botnet, or to infect the rest of your Internet of Things, keep clear of this Trojan tech.


Environmental Impact

No matter how novel or well-designed, some products cost the planet and its people too much, luckily we’ve got just the badge of shame.


Community Choice

Sometimes there’s no perfect category and we just need an outlet for the collective groan we let out at a miserable product, here’s to you, voters!


Overall Worst in Show

This product is just an egregious hodge-podge of bad decisions and should not see the light of day.


To help us out, we called in an expert panel of guest judges for each award category, including:  

  • Repairability (Kyle Wiens, CEO and cofounder, iFixit)

  • Privacy (Cindy Cohn, Executive Director, Electronic Frontier Foundation)

  • Security (Paul Roberts, founder, securepairs)

  • Environmental Impact (Nathan Proctor, National Campaign Director, USPIRG)

  • Community Choice (Selected by our community on Twitter, presented by Cory Doctorow, Special Advisor, Electronic Frontier Foundation)

  • Overall Worst in Show (Cory Doctorow, Special Advisor, Electronic Frontier Foundation).


Our panel of judges will be announcing their winners on Friday, January 15 @ 9am PST during a livestream on the iFixit Youtube channel. They’ll discuss the main factors driving their decisions and answer any questions you might have. If you can’t make the livestream, we’ll share the results of our awards and a livestream recording shortly after on Repair.org.