ATT files response to NASCAR lawsuit

Claiming that Sprint Nextel is trying to increase the value of its NASCAR series sponsorship by "booting" AT&T from the sport, AT&T filed its answer to NASCAR and Sprint Nextel's appeal of an injunction that allows the AT&T logos on the No. 31 Richard Childress Racing car.

AT&T's response was filed earlier this week in U.S. appeals court in Atlanta.

A U.S. district court judge ruled May 18 that NASCAR could not prohibit a change from Cingular to AT&T logos on the car driven by Jeff Burton. The judge concluded that the change was not prohibited by the grandfather clause that went into effect when Nextel began sponsoring NASCAR's premier series in 2004. The grandfather clause is part of RCR's annual licensing contract with NASCAR.

AT&T and Cingular were involved in a merger in December 2006, sparking the change in the Cingular name to AT&T.

A hearing on the appeal is scheduled for Aug. 2, and AT&T's brief argues that the appeal should be denied.

"Although NASCAR asserts without support that the court's injunction compromises its ability to govern the sport and attract sponsors, NASCAR in fact retains today the same rights over stock-car racing that it held before the district court acted, which includes the right to govern the sport and to contract with sponsors regarding promotional rights," AT&T argues in its court filing. More at Scenedaily.com