pma in the global marketplacepmaparts.org/annualconference/presentations2016fl/dickstein.pdf ·...

PMA in the Global Marketplace

2016 MARPA Annual Conference 1

• What is MARPA Doing? • Some quick advice concerning intellectual property


What Has MARPA Been Doing?

• MDCP – partnership with the Department of Commerce

• We’ve been focused on trying to increase international PMA acceptance • We’ve discussed PMA in Argentina, China, Hong Kong, Japan, London, South

Korea, Singapore, Spain, Turkey, and the United Arab Emirates

• We’ve met with carriers and with Civil Aviation Authorities

• We’ve educated about the value offered by PMA


Promoting Your Businesses

• Our travels have taken us to conferences and expositions around the world, at which we feature member promotional materials in each MARPA booth

• We share the airline guide to PMA with operator around the world • Includes a list of the members with a short summary for each about their

business focus


2017 Conference Europe, Middle East and Africa • Dublin, Republic of Ireland

• May 8-9 • reception on the 8th

• general session on the 9th

• Targeting attendance by air carriers and also by leasing companies

• NEW CUSTOMER NETWORKING: We have had great air carrier attendance at the last two EMEA meetings – including many carriers who had not previously attended the domestic conference


2017 Conference North America • Are you getting your ROI out of this meeting? Have you spoken with your

customers? Have you gleaned any new ideas that will help your business thrive?

• Let us know what you think of Orlando as a 2017 option

• Please don’t forget to complete your surveys • There will be prizes!

• The MARPA Board is planning a special half-day session of speakers at the 2017 meeting [designed to reveal valuable business secrets] • This is expected to be a members-only track!


Want to Get Involved?

• Join the Marketing Committee

• See Ryan Aggergaard or Katt Brigham for more information, or contact MARPA after you get home


Thank You to our Sponsors


All Sponsor Representatives: Please Join us by the Podium During the Break for Pictures


Tracking and Highlighting Regulatory Changes that Affect Your Business • Check out our newsletter (and our blog: pmaparts.wordpress.com)

for details on changes affecting regulatory topics like: • Taxes • Inventory accounting • Characterization of import materials • Export compliance standards

• …and business topic like • New business opportunities • Leasing company opinions on PMA

• But, of course, aviation law and regulations are the most important government affairs foci for us


Working with the FAA to Improve Guidance • Statistics Advisory Circular

• Materials Advisory Circular

• Geometry Advisory Circular

• Rub Rig Advisory Circular

• FAA has made a commitment to more cooperatively work with industry to develop this sort of guidance

• Our Technical Committee reviews these documents and helps us develop comments to support the FAA’s efforts


Want to Get Involved?

• Join the Technical Committee

• See Ryan Aggergaard or Katt Brigham for more information, or contact MARPA after you get home


Working with the members to Comply with the Regulations • Recent Part 21 changes included accountable manager provisions and

new 8130-3 privileges

• MARPA members received a compliance checklist last year to facilitate compliance to the new requirements

• If you have not yet adopted 8130-3 tag procedures, then analyze your current system to see if there is a business reason to refrain … Otherwise you should draft 8130-3 tag procedures


8130-3 Tag Procedures

• New last year – 14 CFR 21.137(o) • Authorizes PAHs to issue 8130-3 tags (published October 1, 2015)

• PAHs must have procedures for • Selection

• Appointment

• Training

• Management, and

• Removal

• … of individuals authorized by the production approval holder to issue authorized release documents.


Details

• Additional FAA guidance was issued in a June 24 Memorandum

• Contrary to past guidance, PAHs do not need to immediately surrender their ODA’s 8130-3 privileges • But the deadline for surrendering 8130-3 functions is April 1, 2018

• PAHs do not need FAA approval of the 21.137(o) procedures before implementing • Simply process the changes and notify the FAA like any other change to the

production quality system, per 14 C.F.R. § 21.150


Caution

• Most BASAs still anticipate FAA as the source of 8130-3 tags

• Some authorities may be reticent to take PAH 8130-3 tags, until they get used to the change • The change was negotiated with EASA

• FAA was late to start discussing this with other authorities • They were formally notified in April


Export 8130-3

• Historically, the main difference between an export 8130-3 and domestic 8130-3 was the export tag included a destination (and the designee confirmed that the special import requirements were met)

• The FAA has changed this as of June 24, 2016 with a new Deviation Memo


Export Deviation Memo

• No longer required to have “Export airworthiness approval – This engine/propeller/article meets the special requirements of (enter country)” • Guidance specifies “Do not use the statement” [emphasis in original]

• Export tags will start to look like domestic tags

• FAA justification: “Requiring this statement needlessly complicates the issuance of the tag and hinders the global shipment of engines, propellers and articles, especially when they are exported multiple times”


Maintenance Annex Guidance

• FAA-EASA Maintenance Annex Guidance strongly promotes the use of the 8130-3 tag • It is resulting in repair stations imposing 8130-3 requirements on all parts

transactions (not just those destined for EU-registered aircraft)

• It is also causing other buyers to emphasize the need for an 8130-3 tag

• The failure of some parts in the marketplace to have 8130-3 tags provides an opportunity for PMA parts manufacturers to provide 8130-3 tags and use them as a competitive advantage • Use 21.137(o) if you do not already have designees


Working with the FAA to Improve Regulations • Part 21 rewrite will have significant impact on MARPA members

• Some changes, like splitting design from production, could add significant value to MARPA members

• If you missed Barb Capron’s workshop, yesterday, then please make sure you get a copy of her presentation when it is posted to the website, next week.


We Also Provide Advice to Members

• Members get the benefit of our knowledge

• This knowledge has often been accrued through litigation and other legal efforts

• While the association does not offer a pre-paid legal services program, we do answer simple questions • If we can answer it in 15 minutes, we are usually happy to provide a non-

binding answer (not legal advice)

• We can often answer in 15 minutes something that might take a large law firm eight hours or more to understand and answer


So Lets Look at a Legal Issue Vexing Many Members • Intellectual property

• Protecting your own from unwanted disclosure

• Ensuring your business does not infringe the intellectual property of someone else

• Sometimes, competitors use intellectual property to gain a competitive advantage – this can be legal or illegal depending on the specific facts pattern

• First step is to understand what is – and what is not – intellectual property ….


We all know rhinos exist


And horses exist


But that doesn’t mean that unicorns exist

?


So why do we think that there are magical proprietary rights, out there?


There are Generally Only Four Types Of Intellectual Property • Patent • Copyright

• Trademark • Trade Secret


Four Types of Intellectual Property

• Patent • Must be a novel, useful invention

• Grants a limited monopoly on the use of the idea years from filing

• Copyright • Protects the right of an author to

profit from expression of an idea

• Does not protect against use of the underlying idea

• Trademark • Protects a mark from use in

commerce that would cause confusion, deceit or mistake

• Trade Secret • Protects valuable secrets • Does not protect things required

to be disclosed, nor things that can be discerned (e.g. through reverse engineering)


What Does This Mean?

• When a production approval holder tells you that you cannot do something because it violates IP rights, you should analyze the concerns and make intelligent decisions based on an understanding of the facts and the law. • For example, it suggests that it has proprietary rights in a publicly available

manual, and consequently you cannot perform an inspection found in that manual

• Which right?

• Do not blindly accept a competitor’s ‘proprietary rights’ claims without analysis.


You Can Contract Out of (or Into) Protection

• Want IP-like rights? Cant get them under the law? Establish them by contract!

• Beware of the third party contracts – make sure you understand what rights are being established by the Agreement

• Note that the FAA has said that some aviation industry contracts – like a license limiting availability of ICA to those entitled to the ICA under the law – may be unacceptable


Limits on Licensing

• Normally you cannot violate the antitrust laws in a license

• You may be able to limit competition when you license intellectual property that otherwise would be unavailable (the procompetitive element of licensing offsets the anticompetitive conditions)

• But if you do not really have intellectual property, then there is no pro-competitive offsetting factor

• Do not enter into a license with the thoughts that you will be able to void it on antitrust grounds • The courts may not be willing to void a contract that a business has signed in

good faith, even if it does implicate antitrust


The FAA Has Spoken

• The FAA has published guidance that explains that Instruction for Continued Airworthiness (ICA) must be shared with those required to comply with them (14 C.F.R. 21.50(b)) and that it is an unacceptable practice to fail to share these documents • It is unacceptable to impose many of the licensing-based limits on ICAs that

result in anti-competitive market arrangements

• Consider putting your ICAs on the internet to make them generally available

• This guidance can be found on the MARPA website


Use a Systems-Based Approach to IP

• Intellectual property law can be complicated.

• You should have a program for managing and protecting your intellectual property (use your in-house or outside counsel to assist you in developing such a program)

• Your PMA development programs should recognize what the intellectual property laws permit and what they don’t • Should have a program for managing and protecting data to prevent

misappropriation of intellectual property (use your in-house or outside counsel to assist you in developing this program, too)


Download Our App

• Please download the “Guidebook” App for your phone and select the “MARPA 2016” agenda

• It is also available at www.guidebook.com/getit

• Remember to check in, customize your schedule, and to take and like pictures. The most-liked photo will win a prize at the end of the event this afternoon (must be present to win).


All Sponsor Representatives: Please Join us by the Podium During the Break for Pictures


Thank You

Jason Dickstein

Modification And Replacement Parts Ass’n

2233 Wisconsin Avenue, Suite 503

Washington, DC 20007

Tel: (202) 628-6777 – Fax: (202) 628-8948

[email protected]


pma in the global marketplacepmaparts.org/annualconference/presentations2016fl/dickstein.pdf ·...

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