Safeguarding Your Computers From Hackers

By Joe Dysart

Businesses that are uneasy about the increasing frequency of unsolved hacker cases can take heart: With a bit of forward planning, you can significantly reduce your vulnerability to a computer break-in via the Internet.

So far, the hacking that has grabbed most of the headlines consisted of computer breaches at giant corporations, such as VISA, Mastercard and Paypal, and was perpetrated by a shadowy group of hackers who call themselves “Anonymous.”

“Anonymous is heroic to many people who are sick of government lies and weary of government intrusion—unwarranted and warrantless—into the lives of U.S. citizens,” said Sharon D. Nelson, Esq., president of Sensei Enterprises, a computer security consulting firm. “They have become very much like—in The Terminator movies—the resistance fighting Skynet. Many are script kiddies or amateur hackers. But there is a core group of hackers who have extraordinary skills. They present one of the greatest security threats of recent years. And we have not, so far, done a lot to counter their intrusions.”

But while Anonymous’ exploits have been reserved for big game and even bigger headlines, web-security experts warn that virtually every business and every computer user is at serious risk of being hacked by someone these days—especially those businesses and users that are cruising the web with little or no protection.

“Rogue applications, clickjacking, survey scams—all unheard of just a couple of years ago—are now popping up on a daily basis on social networks such as Facebook,” said Graham Cluley, a senior technology consultant at Sophos, a computer security consulting firm. The firm recently released, “Security Threat Report: 2011."

	Web-security experts warn that virtually every business and every computer user is at serious risk of being hacked by someone these days—especially those businesses and users that are cruising the web with little or no protection.

“Many computer users still don’t realize that you can wind up with something nasty on your machine simply by visiting a website,” Cluley said. “Over the year, we saw an average of 30,000 new malicious URLs every day—that’s one every two to three seconds. More than 70% of these are legitimate websites that have been hacked. This means that businesses and website owners could inadvertently be infecting their patrons unintentionally and without knowledge.”

The security take-away? Businesses of all sizes need to make peace with the fact that hackers don’t seem ready to be neutralized any time soon. Those same companies also need to fess up that their current computer defenses are probably silly putty in the hands of the most experienced of hackers. The best way to begin hardening your digital perimeter is to realize that the people responsible for your web security are the overarching factor in keeping your firm safe—and not necessarily the security technology they administer and oversee.

“Fundamentally, good security really is just good systems administration,” said Ira Winkler, founder of Internet Security Advisors Group, another computer security consulting firm. “And if you can’t afford or can’t get a good system administrator, I recommend outsourcing.”

In fact, Winkler said that the smallest businesses will probably be better served by an outsourced third-party solution, given that the entire business of a top-notch network systems provider focuses on configuring, maintaining and securing computer systems 24/7. In other words: You may want to move your critical business systems to the cloud so that you can take advantage of the relatively sophisticated web security offered there, according to Winkler.

At minimum, Sensei’s Nelson recommends a quality firewall that’s properly configured and Internet security software that guards against viruses, malware and spyware. There should also be security policies in place regarding password length and complexity and the like, Nelson said. And you’ll also need to be sure your staff gets the message that your company’s security is serious business.

Be careful with any custom-made software, Nelson added, since such programs are rarely subjected to the rigorous security testing that popular, established software endures. A content management system (CMS)—software designed to enable businesses to easily update their websites—is often custom-made.

“A custom CMS is usually a bad idea,” Nelson said.

Many people also tend to get lazy about passwords. Surprisingly, one of the most commonly used is “P-A-S-S-W-O-R-D”—a seemingly trivial oversight that has spelled the undoing of countless otherwise-stellar computer security systems.

Nelson recommended complex alphanumeric passwords of more than 12 characters, which are tough to crack even by password-stealing software that is specifically designed for the purpose. And she reminds people to use different IDs and passwords at different gateways.

Nelson also said that businesses need policies in place to establish lockouts after a system user has entered a predetermined number of incorrect IDs or passwords. And the same lockout failsafe needs to kick in the moment an employee departs or is terminated from a business.

For protection of especially critical data, Winkler advised multiple authentication, such as the use of two or three passwords to access a website maintenance account rather than just one. And he said that companies whose data privacy is especially critical should consider investing in data-leakage prevention software.

Employees also need to stay vigilant for hacker “social engineering” ploys—a fancy term for a hacker who forsakes the digital black arts and takes the easy route by tricking someone at a company into surrendering the crown jewels with a friendly phone call or a seemingly innocuous e-mail.

Regular meetings, newsletters or memos about security vigilance also offer an opportunity for firms to update staff about the latest smoke and mirrors in vogue among hackers. A popular one lately, for example, is to regularly spam people with marketing e-mails that seem to originate from a legitimate firm and include a handy “unsubscribe” link at the bottom. Unbeknownst to the recipient, clicking the link activates an invisible download of malware to their PC or other computer device—software that can be used to steal IDs, passwords, credit card numbers, client data and the like.

“Look at the link, and see where it’s coming from,” Winkler advised. If you don’t recognize the company or the link seems hinky, don’t click it.

For more thorough security, you’ll also want to conduct periodic, independent third-party audits.

“If you give it to the cloud, it’s their problem,” Nelson said. “There’s a big debate about whether that’s a good or bad thing. If you’re going to do it, do it completely and use virtualized desktops. In a mixed-bag scenario, both parties
have risks.”

Companies with especially sensitive data will need another layer of security.

“You should have intrusion detection and prevention systems, including ‘honey-pots’—bogus data to attract a hacker there so they can be picked up,” Nelson said. “You can place resources in a DMZ [demilitarized zone], isolating them from the production network. You need the logging system to have a methodology to send alerts when pre-determined events happen or artificial intelligence products that do heuristic analysis and trigger alerts.”

There are, of course, other ways to further toughen your security. Nelson plans to release an entire book on the subject next year. But at a certain point, you’ll probably need to concede that your security will never be perfect—only, you hope, good enough.

“Anybody who sells you ‘perfect security’ is a fool or a liar,” Winkler said. “What security is about is risk management. The more you elevate security, the more you’re raising the bar and the more exponentially you’re decreasing your risk.”

Recent Debate in Washington Raises Questions About the Role of Government

By Dan Sadowski

	Courtesy Shutterstock.com

A year ago, we wrote a column discussing the divided American political landscape in which voters were attempting to find the “change” for which they voted. The public clearly was not prepared for the amount of spending pushed through Congress in 2009 to confront the recession and the resulting jobs loss. Having turned the tables in 2010 with an overwhelming shift in power, Washington politicians still seem to be struggling to understand what voters intend when they vote for “change.” In the coming months, perhaps the most important question to be answered by voters is what they expect the role of government to be.

Last November, voters confirmed what many observers had predicted by delivering an overwhelming rebuke to higher spending and long-term incumbents. Across the country, “vote the bums out” was the refrain, demonstrating voters’ intolerance with their elected officials and a desire to send a message. Congressional Republicans benefited greatly from this new approach to “change,” taking over the majority in the U.S. House of Representatives for the first time since 2007. Given their perceived mandate, Republicans immediately attempted to repeal the health-care law and to address the sluggish economy, lackluster employment and skyrocketing spending by targeting government programs.

As is widely acknowledged, the United States has two fiscal problems. The first is short-term budget deficits for “discretionary programs” made worse by the recession. This includes categories such as transportation, education, health, agriculture and energy. Defense spending is generally considered nondiscretionary, and members of Congress approach cuts at their own peril. The second is comprised of structural problems with “entitlement programs,” whereby not enough money will be collected in the future to cover the expenses for those entitled to receive benefits. The programs include Social Security, Medicare and Food Stamps. Both issues need to be addressed.

In their rush to tackle both fiscal time bombs, the Republican leadership tipped its hand and provided an opportunity for Democrats to respond. House Budget Committee Chairman Paul Ryan (R-WI) issued the “Path to Prosperity,” a document that served as the Republican plan to reduce spending and trim government regulation. The plan also attempts to decrease funding to several long-standing social programs, including Medicare and Social Security benefits.

A focus of attention has been the plan’s proposal to gradually switch Medicare from a guaranteed entitlement to a federal voucher program, transferring potential liabilities from the government to the individual.

President Obama responded by cutting a deal to extend the Bush tax cuts and then address the perception of government intrusion and overregulation. He issued an Executive Order calling on the federal government to review all regulations and identify any that have an unnecessary negative impact on American businesses. In addition, President Obama called for the repeal of the 1099 reporting requirement included in the health-care bill and signed legislation into law making it easier for small businesses to access lines of credit. In taking these issues off the table, President Obama has attempted to blunt the Republican message. Meanwhile, the Democrats have generally avoided suggesting solutions to funding entitlement programs, since it has historically been the fodder for scare tactics and negative ads.

The voting public has sent mixed signals about its current position on these issues. While the electorate appears to still seek “change” by demanding limits on spending, there is a sense that certain reforms are off limits. The debate has recently shifted to the federal debt ceiling and the refusal to raise the limit on the amount of money the government can borrow. Voters appear to demand tighter fiscal restraint—but not necessarily at the expense of entitlements.

On the face of things, it appears that the electorate is voting one way but expecting a different result. While election results show that voters demand less government intrusion in their lives, the call for reform diminishes when programs, such as Medicare, are singled out. As evidenced by the recent special election in New York’s 26th Congressional District, voters will rebuff candidates linked to the plan to reduce Medicare spending. Given this result, are voters sending a message about how far they are willing to sacrifice to reduce the federal deficit?

While these issues will frame the debate as next year’s elections approach, the end result remains to be seen. Is the recent “showdown over spending” between Democrats and Republicans the discussion voters demanded or the beginning of a lengthy and contentious debate over what role government plays in our lives and at what cost? Included in the debate will be other social and economic issues, such as how to balance environmental and economic issues and how to pursue a national energy policy.

Perhaps voters are actually seeking “leadership” rather than change—lawmakers who are willing to identify solutions, explain to the public why the solutions are necessary and build consensus to enable the public to swallow bitter medicine that puts the nation on the path to long-term fiscal responsibility.

These issues—federal spending, deficit reduction and entitlement reform—directly confront our industry because we rely on a healthy and vibrant economy to market and sell our products. Whatever the result of this debate, SEMA remains on the front line in the fight against restrictive regulation and legislative threats to our businesses and our hobby. While it appears that restrictive legislation can be averted for the moment, SEMA continues to promote the strongest position for our membership to succeed within a changing regulatory structure.

Restoration Products and Trends

While “restoration” once referred to using only original or reproduction parts, the industry has come to also embrace the idea of mild modifications to classic vehicles. There is still a definite differentiation between a “restomod” and an all-out hot rod, but the lines have been subtly blurred.

This compilation of restoration products that were introduced at the 2010 SEMA Show runs the gamut from traditional numbers-matching reproductions to modernization components for handling and power. We’ve also interspersed comments from the owners and executives of some of the industry’s leading restoration specialists. Both say a lot about how the marketplace has changed.

A Guide to the New Tools & Equipment Products Introduced at the SEMA Show

Every business involved in the automotive specialty-equipment market has at least one thing in common: They all want to develop the most efficient way to provide customers with top-quality parts, assemblies or services. Finding the right tool for the right job can go a long way toward fulfilling that goal.

The 125 exhibitors in the Tool & Equipment section of the 2010 SEMA Show provided displays that covered more than 28,000 sq. ft. in the Las Vegas Convention Center, and they introduced nearly 130 items in the New Products Showcase. These offerings included applications for virtually every business in the industry. Ranging from test equipment to power tools and from cabinets to creepers, the Showcase was brimming with gear that could shave time and cost from any technician’s workload.

The accompanying guide to new Tools & Equipment products just might harbor the perfect hand or power tools and diagnostic or test equipment to make your company more effective. And even if you’re not in the market for a rotator ratchet or a new hex key set, what gearhead doesn’t enjoy browsing through the latest in tool technology?

Enjoy!

Automotive Test Solutions Inc. ECOP 800/572-6112 http://www.automotivetestsolutions.com/ PN: COP1000 The only ignition pickup that covers all types of ignition systems. Attaches to the coil housing or the ignition wire, capturing a clear waveform.		Better Tools & Fasteners Grip-Tite Super Wrenches SAE Six-Piece Set 866/576-3216 http://www.mygriptite.com/ PN: 143 Grip-Tite Super Wrench sets are the ultimate wrenches for tightening good bolts and nuts and removing rounded, rusted and damaged bolts and nuts.
Baldhead Cabinets Custom Series Modular Seven-Drawer Unit With Pullout Fastener Organizer 877/966-2253 www.BaldheadCabinets.com Custom series: Modular seven-drawer unit with pullout fastener organizer. Available in multiple layouts, sizes and colors.		Bluestone Lighting InCharge Rechargeable Inspection Light for Auto Technicians 888/441-4244 http://www.bluestonelighting.com/ PN: AT70C1N001 Bluestone’s new InCharge induction-recharging inspection light provides auto technicians with a long-lasting, super-bright beam in a compact, affordable package.
Bossco International Corp. Wrist Lite 888/257-1460 http://www.bosscointernational.com/ PN: 310 The Wrist Lite is perfect for all activities where you need extra light. Whether you're working in the garage or in a tight, dark place you will now have bright illumination directly on your project so you no longer have to fumble with a flashlight or lantern.		Terraclean Engine Treatment 905/615-8620 http://www.terraclean.net/ PN: 206225 Works with all motor oils, including GF-5. Designed to prevent zinc and phosphorus damage to catalytic converters. Reduces white sludge caused by ethanol-blended fuels.
Energy Safe Technologies Inc. PowerSafe Computerized Jumper Cables 541/840-0342 http://www.energysafetech.com/ PN: PSJC-400-325 PowerSafe computerized jumper cables plug into tow and roadside service vehicles. PowerSafe technology guides proper hookup, eliminates sparks, regulates power spikes and records jump-start data.		C-Aire Inc. Commercial Air Compressor 651/462-3440 http://www.c-aireinc.com/ PN: WC510822-95V3 This unit features a three-cylinder pump running at a low 670 rpm, 7.5 hp, two stage. A great choice for a small autobody/repair shops.
GearWrench Indexing Double Box Ratcheting Wrench 800/688-8949 http://www.gearwrench.com/ PN: 85490 Combines the benefits of a specialty obstruction wrench with the length and versatility of a GearBox ratcheting wrench.		Bossco InternationalCorp. Luma Lite 888/257-1460 http://www.bosscointernational.com/ PN: 214 The all-in-one light that replaces the wall light, flashlight, lantern and headlamp. With a built-in magnetic base and optional Velcro and hat clip attachments you can work with direct light on any project near or far with this small, portable light.
Stanley Eight-Piece Locking Hex Key Set 800/262-2161 http://www.stanleytools.com/ PN: 97-551 This eight-piece folding hex key set locks in three different positions (90-degree, 135-degree and 180-degree), making it ideal for most applications. By offering up to 630 in.-lb. of torque, no job is too big for this set. Product comes in SAE, mm and star.		Chicago Brand Chicago Brand Open-End Ratchet Wrench 510/656-5155 http://www.chicagobrand.com/ PN: 56038/56039 Our Open-End Ratchet Wrench is the only stainless steel wrench on the market with an innovative ratcheting feature on the open end. With its strong grip and small head, it makes accessing tight work spots possible.

ChemChamp Drum Pump/Liquid Transfer Pump 613/594-3337 www.chemchamp.com PN: 9-02-000-WFP ChemChamp’s C-Pump: The market’s best automatic, light-viscosity pump. Ideal drum pump for transferring flammable chemicals in a controlled fashion. Explosion proof. Chemical resistant. Inexpensive.		Creepex BodyGuard 877/CREEPEX www.creepex.com PN: XT PRO The only creeper with built-in frame protection. Patented, it provides the ultimate body protection while allowing unrestricted arm movements. Engineered to withstand a 30,000-lb. load.
Dale Adams Enterprises Inc. The Tail Bone Mechanic’s Seat 800/266-3321 www.bonecreeper.com PN: 5031 Stable, comfortable, huge-wheeled mechanic’s seat. The 100%-American Tail Bone rolls over the competition.		AAC The Filler Detective 310/832-8336 www.fillerdetective.com PN: FDA-01 The Filler Detective is a handheld meter with sound and lights. It finds accident repairs, rust-out cover-up and other hidden body damage.
Ingersoll Rand Hammerhead 800/376-8665 www.ingersollrandproducts.com PN: 2015MAX The Hammerhead low-profile impact tool offers the power of an impact with the reach of a ratchet, and it’s going to change the way you work.		Granite Digital/Save A Battery Smart Cable Low Battery Warning Monitor 510/471-6442 www.saveabattery.com   PN: 2087-S Smart cables monitor the vehicle’s battery condition and alert user via a low-voltage sensing LED when it’s time to recharge.

Bossco International Corp.
Cuff Lite
888/257-1460
www.bosscointernational.com
PN: 212

The HI:BEAM Cuff Lite is perfect for all activities where you need extra light. Whether you're working in the garage or in a tight, dark place you will now have bright illumination directly on your project so you no longer have to fumble with a flashlight or lantern.

LEGISLATIVE AND TECHNICAL AFFAIRS

By Steve McDonald

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

California Diesel Parts:

	Courtesy Shutterstock.com

At SEMA’s request, the California Air Resources Board (CARB) recently extended its “Parts in Progress” (PIP) program until September 30, 2011. The program was slated to conclude on June 30, 2011. The program was initiated in light of California’s inclusion of light- and medium-duty diesel vehicles in its smog-check program. In order for uncertified diesel parts to not cause failure of the visual portion of the BAR’s smog check, CARB (in conjunction with SEMA and its members) created a procedure whereby members submitted Executive Order (EO) applications. The agency then conducted an “engineering analysis” of the parts and placed them on a PIP list. The PIP list identifies companies that have submitted all traditional EO applications materials and are currently addressing test requirements spelled out in the program, including a rigorous steady-state test mode. Test letters continue to be obtained, and testing has begun. Now through September 30, no diesel vehicle equipped with parts in the certification process will fail the visual portion of BAR’s smog-check test.

Illinois Antique Vehicles:

SEMA-supported legislation to provide for an expanded-use antique-vehicle registration class that would allow antique vehicles and replicas to be driven without limitation during the warmer part of the year (April 1 through October 31) was approved unanimously by the full Illinois Senate. The bill has already been passed by the full Illinois House of Representatives and will now be sent to the governor for his signature and enactment into law. Under the bill, expanded-use antiques are limited to traveling to and from car shows, exhibitions, servicing or demonstration during the colder months (November 1 through March 31). Regular antique vehicle registration would still be available for a lower fee to hobbyists who would prefer operating their vehicles on only a limited-use basis throughout the year.

Nevada Emissions Exemption:

Governor Brian Sandoval signed into law SEMA-supported legislation to exempt classic vehicles and classic rods from emissions inspections if owners pay a one-time $6 fee and submit a certification that their vehicles will not be driven more than 5,000 miles per year. Under previous law, classic rods and classic vehicles were subject to a 2,500-mile-per-year limit to qualify for an emissions exemption and had to pass an initial two-speed idle emissions inspection to qualify. The owners of classic rods and classic vehicles were also required to certify each year that their vehicles had not been driven more than 2,500 miles during the previous year, and the certification had to be verified by a DMV emissions technician. Under the new law, the initial emissions inspection is no longer required.

Texas Street Rods/Customs:

	Courtesy Shutterstock.com

In a last-minute flurry of activity before the adjournment of the legislature, SEMA-model legislation to create a vehicle registration classification for street rods and custom vehicles and provide for special license plates for these vehicles was passed by the full Texas Senate. The bill has already been approved by the full Texas House of Representatives and will now be sent to Governor Rick Perry for his signature and enactment into law. H.B. 890 defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill also allows for the use of non-original materials and creates a titling and registration criterion that assigns these vehicles the same model-year designations as the production vehicles they most closely resemble.  

Online Piracy:

The Senate Judiciary Committee unanimously approved a SEMA-supported bill to help combat online piracy and counterfeiting. The legislation would authorize the Department of Justice and intellectual property rights holders to pursue legal actions against rogue websites dedicated to selling counterfeit goods and copyrighted material. The sites are often foreign owned and operated. Courts would be authorized to issue orders requiring search engines in the United States to stop displaying advertising and links to infringing domain names and prevent consumer payments. The alleged infringer would have full due process protections, including the right to argue its case in court. The legislation would address the growing problem of online sales of counterfeit goods, whether specialty auto parts, pharmaceuticals or movies. These products cost thousands of American jobs, expose consumers to health and safety threats and tarnish business reputations. The bill has been sent to the Senate floor.

Wilderness:

The U.S. Department of the Interior has withdrawn its controversial “wild lands” policy, which directed lands with potential wilderness qualities to be managed as wilderness. SEMA joined with a number of other organizations to oppose the program, implemented last December by the U.S. Bureau of Land Management (BLM), since it usurps the exclusive authority of Congress to designate “wilderness.” The designation is consequential to SEMA members that produce equipment intended for off-road activities and their customers, since no motorized activities are allowed on “wilderness” lands. The BLM manages more than 250 million acres across the western United States and Alaska, 22% of which already has the wilderness designation. Under the wild lands program, the BLM was directed to review its inventory in search of more wild lands. Program opponents noted that it did not take into account input from local communities and elected officials on how the lands should be managed, such as permitting multiple uses that provide jobs and economic benefits. The controversial program was being challenged in Congress and in the courts.

New-Car Mileage Labels:

The U.S. Environmental Protection Agency and the National Highway Traffic Safety Administration have expanded the amount of fuel-economy information contained on new-vehicle window stickers. Among other changes, the information will now include the amount of carbon dioxide emitted by the vehicle. The agencies adopted a SEMA-supported approach to incorporate graphics, increase type size and use other visual tools to help focus consumer attention on fuel economy. The agencies abandoned a proposal to use an A–D letter grading system, which SEMA deemed to be too simplistic. Instead, cars will be ranked on a fleetwide 10-point scale for both fuel economy and greenhouse gas ratings and smog emissions. The labels are required on all new cars starting in 2013, although automakers and dealers may voluntarily use them sooner.

The enthusiast at the center of the case, who lives in the southern town of Ludwigsburg, had sued in court to force local government officials to renew his operating license, which had been withdrawn because of the presence of the aftermarket wheels. Agreeing that the consumer was wrongfully penalized, the administrative court of Stuttgart dismissed arguments, first in July 2009, and then most recently on May 31, 2011, refusing to hear the appeal by the southern German state of Baden-Württemberg. The court cited newly enhanced European Union (EU) mutual recognition regulations (EC) 764/2008 in its siding with the motorist. The regulations are designed to simplify cross-border trade, with the goal of building a long-elusive common market for the free flow of goods among its collective 500-million-plus people. The regulations, as approved by the European Parliament, limit the ability of the 27 EU countries from banning products already legally sold in one or more other European Union countries.

The 2009 regulation revisions are designed to especially address difficulties faced by manufacturers, such as Dymag, whose wheels are at the center of the court case. Dymag wheels were popular throughout Europe, having been used without problem in the United Kingdom and The Netherlands for a number of years and, according to the manufacturer’s website, having undergone extensive testing and meeting or exceeding key international standards. The courts ruled that Baden-Württemberg could not prove that the Dymag wheels are a safety concern, a prerequisite for the denial of products cross-border.

In fact, there was agreement on this point. Local government officials admitted that the denial wasn’t due to any known problems with the wheels. In court documents, Baden-Württemberg noted the denial and took the counter argument: How does the government know the wheels are safe? In the present case, no such current scientific investigations and assessments are available to prove they are not dangerous.

In other words, German government officials, as with officials in all EU countries, are to accept products imported from other EU countries even if they are manufactured to other than local requirements. In announcing its decision, the court noted that the local government did not have a justification in denying an operating license to the consumer, noting: “The long-lasting, unproblematic and accident-free use in Great Britain and the Netherlands in public road traffic and at international motorcycle racing makes such proof unlikely.”

The Roads/Use Are Different in Germany

In its appeal, local state officials protested the court’s decision, noting: “The Administrative Court has referred to road uses in the United Kingdom and The Netherlands. Apart from the fact that there are no official field reports from local authorities of the respective countries available for evaluation, it should not be forgotten that the differences in road traffic conditions between individual member states must also be taken into consideration. A product that can be used in one particular member state without risk because of the conditions of use prevailing in that country cannot necessarily be used without limitations in another member state where conditions are different. To give an example, if the authorities in charge in the United Kingdom, in consideration of the local conditions of use (maximum speed–112 km/h), conclude that motorcycles equipped with carbon wheels do not pose a safety risk, this does not mean that a motorcycle fitted with carbon wheels does not present a risk for the rider and other road users in Germany where the speed limit on highways is much higher (maximum speed for the relevant motorcycles is 281 km/h). At increased speeds, heat buildup in the tires increases significantly and persistently. While conventional wheels can dissipate the generated heat and expand when exposed to heat, this is not the case with carbon wheels. Whether these influences are without consequences for the wheel-and-tire combination is unknown.”

They further protested: “An unverifiable statement about a supposedly accident-free use of carbon-wheel-equipped motorcycles in the United Kingdom and The Netherlands, thus, does not warrant any conclusions applicable to the conditions of use in Germany.”

Notwithstanding the arguments brought by the local German officials, the court did not agree that German roads and use of motor vehicles are so unique as to be deserving of an exemption from European laws and regulations.

“This court case is important. The wheels were clearly safe, having been used in the United Kingdom and Netherlands for many years,” said ETO President Renato Gallo. “Additional testing or the outright denial of specialty products will do nothing to improve safety but will deny German consumers access to safe, popular products enjoyed worldwide. The free flow of goods throughout Europe might indeed become a reality once local governments understand that they don’t have the right to impose technical barriers without a proven need for such limitations.” Added Andrea Pinkerton, the association’s general secretary, “The recognition and ruling by the German court in respect of European legislation and free inner-community trade is highly welcomed by the ETO and sends out a positive signal for inner-community trade. The German court ruling can be used as a reference case to remove burdensome treatment in other European countries. This action is clearly a step in the right direction towards a functioning free inner-community trade within Europe.”

The industry welcomes the court’s decision, as the denial of use has been the largest problem identified by the industry. Since the enhanced regulations were implemented, government national barriers have become much more subtle. Rather than an outright ban of the sale or marketing of specialty products already legally sold in one country, which are clearly spelled out in the regulation, countries have taken to harassing consumers who purchase specialty products legally sold in local shops or over the Internet. Although such actions do not result in direct prohibition of sales of the specialty products in question, they indirectly hinder the use and reduce the potential sale opportunities of such specialty products through not allowing the vehicles modified with those products to be operated. In effect, that could lead to gradual withdrawal of those products from the market, constituting a violation of the mutual recognition principle.

The pro-industry ruling is expected to have the largest impact on countries that have the greatest government oversight over the industry, such as Germany and Spain, which require much more extensive testing and, in contrast to U.S. law, ban all customization unless it’s specifically allowed. Indeed, Baden-Württemberg noted in its court documents the significance of the finding: “If this opinion were to be followed…manufacturers of aftermarket parts could produce any accessories without providing proof of their road safety and, in the event of an approval being denied by the authorities, appeal by stating that the authority had not proven that their accessory was, in fact, hazardous.”

For more information on selling into the European market, contact Linda Spencer at lindas@sema.org.