Germans toughen rules to protect technology

MUNICH, Germany -- German auto suppliers applaud a tightening of guidelines to safeguard their innovations. But some question whether their pact with automakers will be effective.A new agreement forged by automaker and supplier members of VDA, the German auto industry association, calls for secrecy in dealing with product and innovation plans, blueprints, renderings, models, computer-aided design data and process expertise.It is significant because Germany is the heart of the European auto industry. It is home to the region's biggest automaker, Volkswagen, and the world's largest supplier, Robert Bosch GmbH.'Important issue'"Protection of intellectual property is an important issue in the automotive industry," said Ivonne Junghaenel, spokeswoman at Siemens VDO Automotive Corp. in Schwalbach, Germany"Siemens VDO welcomes the new guidelines. They insure the faithful and successful collaboration between suppliers and OEMs."Claus Vogel, member of the German branch of Plastic Omnium's advisory board, said the pact would build trust. "I am confident it will lead to more open relationships," he said.Thomas Knoll, a spokesman for Robert Bosch, said: "Large suppliers like our company place great value on the protection of intellectual property." Bosch applied for more than 2,800 patents in 2005 alone.In rivals' handsSuppliers' expertise often ends up with competitors, various industry sources said. They say this happens, for example, when, during the bidding process, an automaker finds another supplier that can do the work for a lower price.The new agreement seeks to curtail those practices by making its rules binding wherever no separate agreements are in place."The value of the commitment is that both sides have signed it," said VDA spokesman Eckehart Rotter. "It is more detailed than our previous agreements and therefore represents an important step forward."Rotter said the VDA would not sanction violators, but he noted that the agreement is binding: "Both sides have committed themselves," he said.While everyone likes the intentions, some suppliers are skeptical about the implementation."I believe it is a nice gesture, a positive sign that there is the wish to improve relations," said a Tier 1 supplier source. "But times are so tough that I am skeptical the agreement will change things in the short term."'Nice words'Another supplier source said: "These are nice words, which I hope will bear fruit. There is little property or patent protection right now."Christoph Sturmer, senior automotive analyst at Global Insight's Frankfurt office, said there is a need to stop carmakers from taking blueprints for a certain part to another supplier."But there also has to be a limit to protecting suppliers," he said, adding, "in essence, this is an appeal to the ethics of all involved."You may e-mail Jens Meiners at jmeiners@craincom.de

Germans toughen rules to protect technology

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