Is making forklift diagnostic software proprietary a form of price fixing?

Several weeks ago, Forkliftaction.com News North American bureau chief Roger Renstrom reported that some independent forklift service providers in the US are concerned about the rise of proprietary diagnostic software for forklifts, making it difficult for machines to be repaired independent of the manufacturer (Forkliftaction.com News #472).

The article prompted comments from a couple of industry members, managing small, independent companies in Europe.

A managing director of a forklift battery company says the issue "does not affect him at all" as he is not involved in repairing forklifts but "knows a lot of companies who are".

"My understanding is that the OEM companies do not release software or, if they do, it's prohibitively expensive and difficult to get. Some are worse than others. Software should be available to any service agent at a reasonable cost. All this does is lock the customer to the supplier and in my opinion is a form of price fixing," he says.

A general manager of a small French independent forklift service company tells Forkliftaction.com News that "it is a well-known fact that most large forklift manufacturers do everything they can to keep their diagnostic software proprietary and away from third-party maintenance companies" like his.

"We differentiate from those large competitors by providing sales, maintenance and repair services across a whole range of [different brand] equipment. This approach is particularly valued by clients with a fleet of forklifts of diverse origin," he says.

He explains that to overcome the lack of diagnostic information, his company has developed, over the years, an extensive library of tools based on manufacturers' manuals, information shared with other small competitors and the help of some customers who are fed-up by the monopolistic approach of some manufacturers.

"However, the situation is becoming increasingly difficult as diagnostic programs are becoming more complex.

"We (are starting) to see some clients who require from the manufacturers the transfer of a minimum of diagnostic information to be able to do some maintenance on their own. The request becomes part of their purchasing bargaining agreements.

"I would welcome comments from some of my colleagues worldwide who face the same issues. Small guys like us help this industry stay competitive. We simply ask for fair practices," he says.

To discuss this issue and other relevant industry topics, visit Forkliftaction.com's Discussion Forums.