Directive E-108

Global Automotive Parts TrademarksParts Marking Awareness and Service Part Packaging Security Presentation

January 2011

Global Automotive Parts Trademarks

Directive E-108:Global Automotive Parts Trademarks

Update signed by Alan Mulally January 20, 2011

Additional supporting documentationand information can be found at:

https://web.purinfo.ford.comClick the link titled

E-108 Branding Directive

Background

• Company Trademark• 5-digit Supplier (GSDB) Code• Engineering Part Number

Company Directive E-108: Global Automotive Parts Marking and Service Part Packaging Security was originally published in 1999. The Directive establishes the legal foundation to protect against parts and accessories counterfeiting. It has been updated in 2002, 2003, 2005, and now in 2011. It requires that parts and accessories used to build or service Company vehicles have three permanent markings:

• “The three identification marks must be integral to tooling and a permanent characteristic of automotive parts.”

• “Laser etching, ink printing, or other marking methods which are not integral to the manufacturing process of the component part shall be avoided.”

Applies whether tooling for a part is owned by suppliers or by Ford.

Application of Required Marks

• Regardless of the country of origin, suppliers may not place these marks on parts:− Supplier trademark− Supplier trade name− Supplier part number

• If the Company is prohibited by law from requiring that the part not bear such marks, both the Company and supplier trademarks may appear under certain conditions (see Directive E-108: Global Automotive Parts Marking and Service Part Packaging Security).

Prohibited Part Markings

• If the size or nature of the part does not permit application of all three required markings, then the Company Trademark has priority followed by the supplier code.

• For non-safety related automotive industry standard parts that are readily available for purchase in the marketplace “as-is” from competing sources and are not branded for any vehicle manufacturer (e.g., tire valve stems, light bulbs, some fasteners):– Supplier marks are allowed– A Company Trademark, engineering part number, and

supplier code are preferred

Marking Requirement Exceptions

• For “black box” parts that are fully engineered and assembled by a supplier that are also used by multiple vehicle manufacturers without modification:

– Supplier identifying markings are not preferred, but allowed if such markings are not customer-visible when installed

– A permanent, secondary marking method such as laser marking or a secure label with a Company Trademark, engineering part number, and supplier code must be visible on the part.

Marking Requirement Exceptions

• Compliance with this Directive is required unless a part fully meets an exception defined herein or a Parts Trademark Exemption Request has been submitted to and approved in advance by the respective brand’s Parts Brand Protection Group, or successor process approved by FGTL (refer to https://web.purinfo.ford.com).

Marking Requirement Exceptions

Directive revisions are required to address the following:

• Corporate-Owned Brands - Recent brand divestitures (Aston Martin, Land Rover, Jaguar, Mazda, Volvo) require appropriate amendments

• Highly Visible Branding (HVB) - An initiative to define the specific size and location for E-108 markings in certain collision parts

• Packaging Security - Establish uniform standards for security features in service part and accessory packaging across all business units

• Patent Law – Recent U.S. case law has significantly increased damages for false patent marking which has spurred an explosion of new suits, including suits against automotive suppliers

2011 Revisions

The divestiture of Aston Martin, Jaguar, Land Rover, Mazda, and Volvo requires removal of all the respective brand references and allows the trademark marking requirements to be reprioritized.

2005 language:

• For common parts shared between two or more primary vehicle brands, FoMoCo in block letters inside a rectangle (preferred) or FoMoCo in block letters;

• For brand-unique parts that are not common, a primary vehicle brand trademark (e.g., Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury, or Volvo). These brand-specific trademarks may also be applied after a common part trademark exemption has been authorized by a Company-approved cross-brand governance process, or other process approved by the appropriate Vice-President with cross-brand responsibility (refer to https://web.purinfo.ford.com); and

• Any other trademark registered, owned, or licensed by the Company for use in connection with a vehicle (e.g., PowerStroke, F-150) or for certain production and service parts (e.g., Motorcraft).

2011 language:Company Trademark – Acceptable CompanyTrademarks are one of the following:

Company Trademark – Acceptable CompanyTrademarks are:

• In order of priority (i) The Ford oval, (ii) Ford (the workmark), and (iii) FoMoCo in block letters are the parties involved

• For brand-unique parts, a primary Company vehicle brand Trademark, for example: Ford, Lincoln, or Mercury may be used

• Vehicle Nameplate and associated derivative Trademarks, for example: F-150, Mustang or SVT

• Service part Trademarks, for example: Motorcraft• Highly-Visible Branding (HVB) parts require an

appropriate brand-unique Trademark to be visible to the customer and service personnel after final assembly. Refer to respective design standard for a more detailed explanation of the specific requirements and listing of HVB parts. Application guidelines will also be found at the Ford Supplier Information website.

Highly Visible Branding is a growing industry trend to integrate prominent company trademarks into certain, high-profile vehicle components. Relevant updated supporting documents (E3-CAD & Drafting standards, SDS-design specifications) are pending Directive approval.Directive language - Highly Visible Branding (HVB) parts require an appropriate brand-unique Trademark to be visible to the customer and service personnel after final assembly. Refer to respective design standard for a more detailed explanation of the specific requirements and listing of HVB parts. Application guidelines will also be found at the Ford Supplier information website.

Fender Catwalk example

Affected parts:• Radiator Grille• All side Doors• Hood• Tailgate/Decklid/Liftgate• Bumpers• Mirrors• Fenders

Grille example

The growing counterfeiting phenomenon combined with the Company’s global platforms necessitates the need for packaging security standards across all business units. Layered security features enable the authentication of product in the market place at all levels of the supply chain.

Directive language: All service parts or accessory packaging for Company vehicles must contain at least two overt, one covert, and one secret security feature. Details are as follows:

Overt Security Features. Acceptable overt security features are visible to the human eye and which provide unique characteristics for self-authentication.Covert Security Features. Acceptable covert features are hidden and are not visible or readily identifiable, providing a higher level of protection. Secret Security Features. Acceptable secret authentication features are a deliberate manipulation of a covert feature or an additional covert feature.

More detail is available at: https://web.pkginfo.ford.com

Packaging Security

Directive Language:E. Patent Markings

It is permissible to mark a component part with suppliers’ patent number or with the words “PATENT PENDING,” but always in conformance with all applicable local laws, including all patent marking statutes, and Company-approved part master record guidelines (for example, CAD file or part drawing) for the part. Ford is unable to, and does not, police the patent marking practices of suppliers. Markings for a supplier-owned patent is at the sole decision and discretion of suppliers and, by so electing, suppliers represent that any such markings are accurate and comply with all patent marking laws. For example, parts are not to be marked with expired patents and every patent marked must be individually applicable to the part.

Considerations:• Patents are both highly technical and highly specific to a particular technology and product. Ford is unable to oversee

accurate marking of patent numbers by suppliers. • Ford allows suppliers to mark their products with their patent numbers in accordance with local applicable law.

Supporting PPGTC Provisions & Web Guides:• Supplier warrants that their Goods comply with all Government Requirements under PPGTC Section 22.01 (b)• Updated PPGTC web guide defining:

– an improper patent marking is a type of non-conforming Good under PPGTC Section 14.06. – Suppliers are reminded of their liability to Ford for all direct, incidental and consequential damages, losses, costs,

and expenses Ford may suffer as a result of an improperly marked product.

Patent Lawhttps://web.purinfo.ford.com/documents/brandprot/patentaware.pdf

Recent case law has significantly increased damages for false patent marking which led to a dramatic increase of new law suits. Directive E-108 has been changed to increase the likelihood for early dismissal of lawsuits brought against the Company due to supplier outdated and/or inaccurate parts patent markings.

Questions?

• Refer to https://web.purinfo.ford.com under E-108

• Refer to the Directive E-108 Synopsis and list of Sustaining Documents on the following two slides

• Refer to Ford Motor Company Engineering SDS Trustmark (WCR) Requirement 19-0108 and DVM-0011-19

• Refer to Ford Motor Company Engineering CAD & Drafting Standard E-3 http://www.fecds.ford.com/cad_pdf/e-3.pdf

• Contact your Production or Service Buyer

• Contact Global Parts Brand Protection at brandgrp@ford.com; please send European related questions to bprotect@ford.com