Last week, the Consumer Guarantees (Right to Repair) Amendment Bill was withdrawn from the legislative agenda of the New Zealand Parliament before its second reading. The Bill, introduced by the opposition Green Party, narrowly passed its first reading and was referred to the Economic Development, Science and Innovation Committee to consider public submissions. However, a majority of the Committee considered the Bill unworkable and recommended that it not proceed.
Although the Bill will not be enacted, several Government MPs expressed support for its intent during the first reading, suggesting that a revised version could attract broader cross-party backing in the future. The Right to Repair debate is, therefore, far from over.
What the Bill proposed
As discussed here when the Bill was introduced, the Bill sought to prevent manufacturers from opting out of their obligation under the Consumer Guarantees Act 1993 to make repair facilities and spare parts reasonably available for a reasonable time after goods are sold.
However, the Bill's scope was exceptionally broad, covering virtually every consumer good, from toothbrushes to trucks. Except for money and choses in action, it would have required manufacturers to make information, repairs, and spare parts available for all goods supplied in trade to New Zealand consumers.
A proposed amendment by the Green Party sought to limit the Bill’s application to electrical goods costing at least NZ$100 but excluding disposable products and most vehicles. The Committee nevertheless concluded that the Bill remained impractical.
Right to repair not a right to reverse engineer
The Bill acknowledged that the information, spare parts, software, and other tools needed to diagnose or repair goods may be protected by intellectual property rights such as patents, copyright, registered designs, and trade marks.
However, unlike similar laws in Australia and the United States, the Bill did not explicitly protect manufacturers’ trade secrets. This omission raised concerns that competitors could exploit repair information to reverse engineer products.
Practical advice for manufacturers
Regardless of whether Right to Repair legislation is enacted in New Zealand, manufacturers can take proactive steps to protect their intellectual property in aftermarket parts.
There is no spare parts exception in New Zealand’s copyright law. A three-dimensional copy of a spare part can infringe copyright in the original technical drawing for up to 16 years after industrial application. Manufacturers should retain CAD or other technical drawings and could consider redesigning or updating parts before copyright protection expires.
Under the Designs Act 1953, manufacturers can protect the shape, configuration, pattern or ornament of any part of an article if that part is made and sold separately. Unlike in Europe, there are no “must-fit” or “must-match” exceptions to design protection in New Zealand legislation.
Patents can be directed to innovative components within products, such as a new brushless electric motor that could be incorporated into drones, electric vehicles, or power tools.
Finally, registered trade mark protection can expressly cover spare parts by including words such as “parts and fittings in relation to all the aforementioned goods” in a trade mark specification.
Looking ahead
The withdrawal of the Bill provides manufacturers with some breathing space. Now is a good time for manufacturers to review their intellectual property protection strategies and assess how future Right to Repair legislation in New Zealand, as well as legislation overseas, could affect their aftermarket sales.
