A Struggle for Information, A Struggle for Survival

By Mitch Traphagen

mitch@observernews.net

BRANDON - There are many ways to describe our modern world. It is commonly called the information age. Many say that information is power, that the key to success is information.

No one knows that better than Bob Clarke, owner of Clarke Automotive Services in Brandon. It is the struggle for information that is putting the survival of his livelihood in jeopardy.

For Clarke, however, the issue is much larger than the survival of his business. It is about the fundamental rights of property ownership, it is about the United States Constitution.

"Technology is everywhere," said Clarke. "The drive system, the brake system, everything. Almost every component of the car involves information systems."

The issue, stated simply, is whether a consumer buys that information when they buy their new car.

"The manufacturers are creating an unlevel playing field," Clarke continued. "Such that I will not be as competent as the dealer, I will not be as cost competitive as the dealer and I will not be as convenient as the dealer. Twenty-one world manufacturers are implementing a business plan to be able to absorb the automotive service revenue stream back into their coffers. The net effect will be that you will have to procure automotive services from the dealer." According to some people, it is not neccessarily the fault of the local dealers but rather the manufacturing corporations.

A large part of the issue revolves around intellectual property rights. Many corporations assert that they are merely trying to protect their investment. People like Clarke are asserting that the issue is really personal property rights - when you buy a car you also buy the information contained within.

"In the past, the research and development was included when you purchased an automobile," said Clarke. "The information became public domain. You owned it, you could take it apart. The manufacturers are now saying that the information is not in the public domain. That restriction will act in a way to perpetrate a monopoly."

The issue of a monopoly is where the laws as they exist today fall short according to Clarke. Since there are so many world manufacturers, there technically is no monopoly, it is known as an oligopoly. From the consumer's standpoint, however, it might as well be a monopoly. The investment required to purchase an automobile is such that switching brands is not usually feasible. It is difficult and expensive to switch so the typical consumer is effectively locked in.

According to Clarke, the assertion of intellectual property rights is a serious business. "Laws are being formulated and are being considered by Congress now that if I were to know intellectual property and were to share it with anyone else, even in a conversation, that would be prosecutable as a felony," he said.

"I do believe in intellectual property rights," he continued. The framers of the Constitution established that and called it a copyright. But they also limited the scope of it. This is a prime example of where the assertion of intellectual property rights diminishes personal property rights."

For a business like Clarke's the impact is already being felt. "In January I paid $175 to be competent with the information I need to repair automobiles," he said. "In August that will change. My monthly fees could go to between $2,000 and $5,000 per month. And there's no limit on that."

For Clarke and others like him, the cost of the information is only one component of their changing world. "It used to be that I could purchase one tester and that worked on every automobile," he said. "Today I have to buy proprietary testers (for each car). It could be $100,000 or more and, by the way, those testers become obsolete within a few years."

Clarke is not alone in his concern. Jim Graesart is a manger of a lube shop owned by Mobile Oil Company. Graesart made it clear that he was speaking as a private citizen and not on behalf of Mobile. He is aware, however, of concern within his industry.

"What are we heading towards," asked Graesart. "If I can fix something for $100 they can charge $500 because I won't know the details involved in fixing it. Where will this stop? Medical equipment? They'll sell the machine but not tell how to operate it?"

"What they are trying to do is unfortunate," said Graesart. "It's tough on the aftermarket industry. We are constantly in need of knowledge - what fluid goes into the differential, what fluid goes into the transmission. If they keep that a secret and I put in the wrong fluid, I just bought a transmission. What the manufacturers are saying is that only they can repair it, they will hold us hostage."

According to Clarke, he is not merely complaining about the potential for losing his ability to compete.

"My justification in the marketplace is that I offer an alternative to dealers," he said. "Will I be doing this in the future? In terms of my motivation, my intelligence, my basic character in that I am able to offer honest service, there's no reason why I shouldn't be. But I'm telling you that I will not be."

He is, however concerned about what he sees as huge problems looming on the horizon. And, as it says in the rear view mirror, those problems are closer than they appear.

"I've been a proponent of this for five or six years," said Clarke who recently traveled to Washington D.C. to meet with legislators. "It's time for a grassroots consumer advocacy group to form across the nation. The name of that organization is My Car, My Choice. We hope to be able to support legislation to protect the competitive marketplace so that your hard earned dollars will go as far as competition will allow."

To Clarke, the bottom line extends well past the automotive industry. "If I were to lose this business, in this country I'd start over again," he said. "My passion is my children and my grandchildren. But someone is trying to tear pieces out of the Constitution and the Bill of Rights. It's damnable and tyrannical."

Further information about Clarke's organization, My Car, My Choice is available on the Web at www.mycarmychoice.com.