Colorado’s Right to Repair Bill Might Spark a Rise in Phone Theft

The Colorado House of Representatives recently passed HB 1121, a proposal for “right to repair” legislation. The bill would force device manufacturers to make tools, documents, and parts available to third-party independent repair shops. HB 1121 would introduce various parts pairing prohibitions, which can inadvertently fuel black markets for spare parts, putting Coloradans at a higher risk of theft and other property crimes.

The bill would heavily restrict manufacturers’ ability to use “parts pairing,” a software tool that manufacturers use to ensure that all the components of a device match the device’s serial number. By using parts pairing, manufacturers can ensure that any device repairer is using authorized, previously vetted parts that are known to work and that have been knowingly acquired from a legitimate source.

Advocates for the legislation argue that parts pairing severely cripples repair shops’ business model because it doesn’t allow them to “harvest” parts—repurposing functioning parts from otherwise broken devices—for future repairs. These repurposed parts would not match the serial number of the serviced device, and parts pairing software would flag a part as non-genuine. This has motivated advocates of right to repair legislation to push for the inclusion of restrictions on parts pairing in legislation such as HB 1121.

Repair shops’ concerns about the effects on parts pairing on their business model is a legitimate one and the provision is well-intentioned. However, policymakers should consider the role parts pairing can have as a deterrent against spare parts black markets, which usually feed off stolen and counterfeited devices to build out their inventory. Software-side solutions have a proven track record of deterring crime. When major smartphone manufacturers introduced the “kill switch,” which locks stolen phones and makes them unusable, smartphone robberies saw a significant decrease after hitting an all-time high in 2013.

Unfortunately, criminals have responded to the introduction of kill switches by stripping these phones and selling these parts, instead of the whole devices. These stolen parts can end up in unsuspecting repair shops in the U.S. or in black markets all around the world. Parts pairing aims to tackle this issue by devaluing these stolen parts, as the software would detect when a device is using unauthorized parts. However, if this bill were to pass, these spare parts would regain their value on the black market and as these parts can now be used in unsanctioned repair work.

The bill’s impact would not be limited only to Colorado, but to the whole country. Thieves can ship small, portable electronics from all over the country. These stolen parts could end up flooding the domestic repair market or be shipped overseas for a premium. Legislators in Colorado should be wary of how this provision could lead to a nationwide surge in property theft, such as shoplifting, pickpocketing, and robbery.

The introduction of a parts-pairing prohibition in this bill seems contradictory with other realities present in the state. HB 1121 restrict parts pairing for smartphones and consumers electronics, while other industries are moving in the opposite direction. For example, auto insurance companies and repair shops in Colorado rolled out a system that would help track catalytic converters, a car part that has seen a rise in theft due to its ease of access and high resale value. By using tear-resistant stickers, unique serial number identifiers, and chemical components, law enforcement officers, repair shops, and salvagers are making sure the parts they are using come from a legitimate source. The drafters of the bill seem to recognize the value of this parts pairing effort, as they explicitly exempted motor vehicles (and a plethora of other technologies) from being covered by this bill.

Repair shops and regulators pushing for a prohibition of parts pairing must understand the tradeoffs that are inherent to any policy. In this case, prohibiting parts pairing could cause more problems than it solves, as the practice acts as a significant deterrent for stolen parts black markets. As currently drafted, HB 1121, would make stolen parts more valuable for resale, providing ill-intentioned individuals more opportunities for profiting of property crime, as it happens with other goods such as automobiles.  By prohibiting parts pairing, legislators could potentially make Coloradans a bigger target for crime.