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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