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Nascar Sued by Sellars Absorbent Materials for Contract Breach

By Dawn McCarty

April 16 (Bloomberg) -- Nascar, the sanctioning body for stock-car racing, was sued by a maker of automotive wet wipes for breach of a license agreement.

Sellars Absorbent Materials Inc., a manufacturer of automotive car products, said Nascar refused to approve packaging and marketing materials in connection with its automotive disposable wet wipes.

The company paid Nascar $1.5 million for the exclusive right to use the Nascar logo to market its products, including wipes that will protect the surface and interior of cars, according to a lawsuit filed April 11 in federal court in Orlando, Florida.

Nascar, based in Orlando, contends that Sellars can't market the wipes as a protectant due to an exclusive license agreement it has with 3M for ``protectants,'' according to the complaint.

Sellars alleges that Nascar granted it the exclusive right to use its logo for the wipes and is now attempting to ``retroactively limit the scope of the license rights.''

``Although Nascar identified certain limitations and exceptions in the license agreement and amendments,'' Sellars said in court papers. ``Nascar did not create an exception for `protectants.'''

Ramsey Poston, spokesman for Nascar, didn't immediately return an after-hours call seeking comment.

The case is Sellars Absorbent Materials Inc. v. National Association for Stock Car Auto Racing Inc., 6:08-CV-548, U.S. District Court, Middle District of Florida (Orlando).

To contact the reporter on this story: Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net.

Last Updated: April 16, 2008 19:12 EDT

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