IMS Files Counter Suit Against CART

05/09/96

On Monday the Indianapolis Motor Speedway (IMS) filed a lawsuit against Championship Auto Racing Teams in a U.S. District Court in Indianapolis, Indiana. The suit is the latest move in a legal battle between the IMS and CART that revolves around which organization has rights to the term "IndyCar." CART sued the IMS over the same issue on March 22 in Detroit, after the IMS wrote a letter asking CART to stop using the trademarked name.

The IMS licensed the IndyCar name and mark to CART under a trademark license agreement in 1992. A statement by the Indianapolis Motor Speedway contends that CART has continually refused to comply with the license agreement.

The origins of the IMS/CART battle lie in a dispute over the future of "Indy" racing. The rift went public when Indianapolis Motor Speedway president Tony George founded the Indy Racing League to preserve the "oval track" tradition of Indy Racing. After George founded the strictly oval track IRL series, CART devised a race that would run opposite the Indy 500 and draw CART drivers away from the Indy 500. The inaugural running of CART's U.S. 500 will run opposite the Indy 500 on Memorial Day in Michigan.

Commenting on the IMS lawsuit against CART, Tony George said, "It is unfortunate CART has decided neither to cooperate nor to adhere to the terms of its contract with us. Indeed, CART continues to trade on our good name at the same time it maligns us and the Indy Racing League, and boycotts our race. Their conduct has left us with no other choice than to file this suit."

CART says that it has complied with the legal requirements of using the name and logo. The IMS contends the breach of the agreement includes not racing at Indianapolis Motor Speedway.

The matter will be in court soon, as a judge must rule on CART's request to have the suit heard in Detroit. CART will argue that the subject matter of the IMS lawsuit duplicates CART's original suit and that Detroit is therefore the proper place for both suits to be settled. Additionally, the IMS did not ask for a jury trial, while CART did. CART said that if a judge decides that the trial should be heard in Indianapolis rather than Detroit, IndyCar will demand its right to a jury trial.

Paul Dever -- The Auto Channel