Federal Authorities Support Right-to-Repair Advocates, Call for Reparable Ice Cream Machines

Federal Authorities Support Right-to-Repair Advocates, Call for Reparable Ice Cream Machines

In a surprising move, the Federal Trade Commission (FTC) and the U.S. Department of Justice’s anti-trust division have come out in support of right-to-repair advocates. They are pushing for broader exemptions that would allow business owners, particularly McDonald’s franchise owners, to independently fix their chronically broken ice cream machines. This reform would promote competition in the repair market and save consumers a significant amount of money.

At the heart of this issue is Section 1201 of the Digital Millennium Copyright Act (DMCA), a law that prohibits bypassing software locks on devices. Under this law, using third-party tools to diagnose or repair broken devices that rely on software could be considered a copyright violation. However, exemptions to Section 1201 are issued every three years by the U.S. Copyright Office.

The FTC and DOJ have asked the Copyright Office to issue new exemptions to allow for repairs of “commercial and industrial equipment.” They argue that renewing and expanding repair-related exemptions would promote competition in markets for replacement parts, repair, and maintenance services. Additionally, it would facilitate competition in markets for repairable products. In their joint comment, the agencies stated that a DMCA exemption would not only promote competition but also save consumers money and make their purchases a better investment.

The agencies cited a petition filed by popular repair parts vendor iFixit and advocacy group Public Knowledge, highlighting the negative impact of not being able to perform independent repairs. They claimed that this restriction can lead to significant losses in sales revenue. For example, the average estimated cost of “unplanned manufacturing downtime” is $260,000 per hour. In the case of soft serve machines, breakdowns can result in $625 in lost sales each day the owner has to wait for an authorized technician.

Last year, iFixit performed a teardown on the exact ice cream machine model used in McDonald’s stores. They found that the machines, supplied by Taylor, an Illinois-based restaurant equipment manufacturer, had easily replaceable parts. However, the machine displayed multiple “nonsensical, counterintuitive, and seemingly random” error codes. This led to frustration among franchise owners who were unable to fix the machines themselves due to copyright restrictions.

A California-based tech firm, Kytch, developed a gadget that could intercept the error messages and help owners troubleshoot McFlurry machines. However, McDonald’s sent warnings to franchisees to stop using Kytch devices, leading to a legal battle between Kytch, McDonald’s, and Taylor. Kytch sued both companies, seeking $900 million in damages, alleging that Taylor reverse-engineered its device to create its own troubleshooting assistant. Taylor responded by claiming that using the Kytch product could “cause serious human injury.”

These cases have brought attention to the issue of right-to-repair and the limitations imposed by copyright laws. McDonald’s franchise owners have complained about losing business due to the inability to independently fix their McFlurry machines. Taylor has defended its machinery, stating that there is a “lack of knowledge” among owners about how the equipment operates. They argue that proper cleaning and maintenance are essential for the machines to function correctly.

The support from federal authorities for right-to-repair advocates is a significant development. If the exemptions to Section 1201 are expanded, it could have far-reaching implications beyond ice cream machines. It would give business owners more control over repairs, promoting competition and potentially lowering repair costs for consumers. As the FTC and DOJ continue to push for reform, it remains to be seen how this issue will unfold and what impact it will have on the repair market and consumers’ purchasing decisions.