Circular Economy and Sustainable Development Goals (SDGs)

The circular economy challenges traditional resource consumption models by shifting from a “take-make-dispose” approach to one emphasizing sustainability, longevity, repairability, and recycling. This paradigm aligns closely with several Sustainable Development Goals (SDGs), including SDG 12 (Responsible Consumption and Production), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action). By integrating intellectual property (IP) rights management with repair rights, companies can foster innovation while advancing environmental sustainability and resource conservation for future generations.

Benefits of Repair in Product Lifecycle Management

• Customer Loyalty and Trust: Environmentally responsible brands attract and retain customers, supporting SDG 12.
• Resilient Supply Chains: Repairable products enhance supply chain robustness, contributing to SDG 9.
• Local Economic Development: Repair economies reduce environmental impacts from transportation and create jobs locally, supporting SDG 8 (Decent Work and Economic Growth) and SDG 11 (Sustainable Cities and Communities).

Legal Frameworks Governing Repair Rights

Understanding regional legal frameworks is essential for companies to navigate repair rights effectively, balancing IP protection with sustainability objectives.

United States Legal Framework

The U.S. doctrine of patent exhaustion establishes that once a patented product is sold, the IP holder’s rights over that item are exhausted, allowing the product owner to repair or resell it without infringement. This supports SDG 9 by encouraging innovation and sustainable industry practices.

Permissible Repair

Permissible repair includes actions preserving a product’s utility by replacing unpatented parts individually. Landmark cases such as Aro Mfg. Co. v. Convertible Top Replacement Co. (1961) and Impression Products v. Lexmark International (2017) affirm these rights.

Impermissible Reconstruction

Reconstruction refers to creating a new article from a spent patented product, which infringes patent rights. Distinguishing repair from reconstruction involves assessing:

1. Extent of Replacement: Large-scale simultaneous replacement may indicate reconstruction.
2. Nature of Parts Replaced: Replacement of essential patented components suggests reconstruction.
3. Purpose of Replacement: Intent to restore versus create a new product is critical.

Example Case

The Karl Storz case illustrates that replacing a spark plug is repair, whereas replacing an entire automobile at once is reconstruction.

Federal and State-Level Developments in the U.S.

• Federal Support: Apple Inc.’s endorsement of federal right to repair legislation and the Federal Trade Commission’s (FTC) enforcement actions promote consumer rights and sustainable practices (SDG 12, SDG 9).
• State Legislation: All 50 states have introduced right to repair bills, with laws enacted in states like New York, California, and Oregon. Oregon’s 2024 law bans software restrictions on repairs, fostering transparency and sustainability.

European Union Legal Framework

The EU also applies the principle of exhaustion of IP rights, allowing consumers to repair products post-sale, supporting SDG 12 and SDG 9. However, no uniform guidelines exist across member states for distinguishing repair from reconstruction. The European Patent Convention (EPC) guides national courts in these matters.

Permissible Repair Criteria in the EU

1. Subsidiary Nature of Replaced Component: Minor parts not embodying the inventive concept are typically repairable.
2. Life Expectancy: Components with shorter lifespans expected to be replaced periodically qualify as repair.
3. Ease of Replacement: Easily replaceable and perishable parts are associated with repair.
4. Inventive Concept: Components lacking inventive patent elements are repairable.
5. Independent Identity: Parts integral to product identity may indicate reconstruction if replaced.

Impermissible Reconstruction in the EU

1. Replacing all claimed patented elements without reuse is reconstruction.
2. Creating a new article from a worn product is reconstruction.
3. Using patented parts or methods without authorization infringes patent rights.

EU Directive on Promoting Repair

The EU Directive (EU) 2024/1799, effective July 30, 2024, and to be transposed by July 31, 2026, advances SDG 12 by mandating:

1. Obligation to Repair: Manufacturers must repair specified products (e.g., fridges, smartphones) within reasonable time and cost.
2. Prohibition of Repair Impediments: Ban on contractual or technical barriers to repair unless justified.
3. Access to Spare Parts and Information: Manufacturers must provide spare parts and repair information transparently.
4. Consumer Awareness: Consumers must be informed about repair services and parts availability.

Conclusion

Balancing intellectual property protection with repair rights is essential for companies to thrive in the circular economy and contribute to the Sustainable Development Goals, particularly SDG 12 (Responsible Consumption and Production), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action). Legal frameworks in the U.S. and EU increasingly support consumer repair rights and independent repair markets, fostering innovation, reducing waste, and promoting sustainable economic growth. Companies that align their strategies with these evolving regulations and sustainability goals will be well-positioned for long-term success and environmental stewardship.

1. Sustainable Development Goals (SDGs) Addressed in the Article

• SDG 9: Industry, Innovation and Infrastructure
  • The article discusses innovation in product design, intellectual property management, and repairability, which are central to building resilient infrastructure and fostering innovation.
• SDG 11: Sustainable Cities and Communities
  • By promoting local repair economies and reducing transportation-related environmental impacts, the article connects to building sustainable communities.
• SDG 12: Responsible Consumption and Production
  • The circular economy model, repair rights, and legislation to reduce waste and extend product lifespans directly address sustainable consumption and production patterns.
• SDG 8: Decent Work and Economic Growth
  • Creation of jobs and economic opportunities in local repair sectors supports sustained, inclusive economic growth and decent work.
• SDG 13: Climate Action
  • Reducing waste and conserving resources through repair and circular economy practices contribute to climate action by lowering environmental impact.

2. Specific Targets Under Identified SDGs

• SDG 9: Industry, Innovation and Infrastructure
  • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.
  • Target 9.5: Enhance scientific research, upgrade technological capabilities of industrial sectors, including encouraging innovation in repair technologies.
• SDG 11: Sustainable Cities and Communities
  • Target 11.6: Reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.
• SDG 12: Responsible Consumption and Production
  • Target 12.2: Achieve the sustainable management and efficient use of natural resources.
  • Target 12.5: Substantially reduce waste generation through prevention, reduction, recycling, and reuse.
  • Target 12.8: Ensure that people have relevant information and awareness for sustainable development and lifestyles in harmony with nature.
• SDG 8: Decent Work and Economic Growth
  • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, and innovation.
• SDG 13: Climate Action
  • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.

3. Indicators Mentioned or Implied in the Article

• Indicator for SDG 12.5:
  • Reduction in waste generation through repair and reuse practices, implied by the article’s emphasis on extending product lifespans and reducing disposal.
• Indicator for SDG 9.4 and 9.5:
  • Number of companies adopting sustainable product design and repair-friendly technologies, suggested by the discussion on companies embracing repairability and IP management.
• Indicator for SDG 8.3:
  • Growth in employment and economic activity in local repair sectors, as the article highlights job creation and economic opportunities in repair economies.
• Indicator for SDG 12.8:
  • Consumer awareness and access to repair information and services, implied through the EU directive’s requirement for manufacturers to provide repair information and transparency.
• Indicator for SDG 13.2:
  • Incorporation of repair and circular economy principles into national policies and legislation, as shown by the U.S. federal and state laws and the EU directive.

4. Table of SDGs, Targets, and Indicators

Source: natlawreview.com