GM sues Ohio company for rare 'Vette replicas
03-21-2010, 08:05 AM
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GM sues Ohio company for rare 'Vette replicas
video and article link http://www.detroitnews.com/article/2...Vette-replicas
Last Updated: March 21. 2010 1:12AM
GM sues Ohio company for rare 'Vette replicas
Robert Snell / The Detroit News
The 1963 Corvette Grand Sport roadster is the rarest and arguably most important Corvette model ever made. Only five were built, and they sell for millions at auction.
But an Ohio company is being sued by General Motors for churning out replica versions that sell for less than $90,000.
The lawsuit was filed this month in U.S. District Court against Mongoose Motorsports LLC of Cuyahoga Falls, Ohio, which specializes in building replica 1984-88 GTP models and the legendary Grand Sport.
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The lawsuit is a bid by GM to protect valuable and lucrative trademark rights to an iconic brand beloved by auto enthusiasts, and it sheds light on a niche industry.
GM is suing for trademark infringement, claiming the iconic brand has been irreparably harmed by the ersatz sports cars, which the automaker says copy the Corvette's design -- curve for curve.
"This is not an homage," GM spokesman Tom Wilkinson said.
GM wants a judge to bar the company from making and selling models using the Corvette design; order the destruction of all labels, signs and ads bearing Corvette trademarks; and let GM inspect Mongoose's office and financial records. GM also wants unspecified financial damages.
Mongoose's Web site is a parts bazaar where enthusiasts can buy a Corvette Grand Sport rear emblem for $99.95, or an entire replica sports car. But Mongoose is not licensed to use the Corvette trademarks, according to the lawsuit.
Mongoose operations manager Gary Krause Jr. was unaware of the lawsuit until being contacted by The Detroit News.
"That's news to me," he said during a brief phone interview. "I really would rather not go into any detail."
His company couldn't have picked a rarer Corvette to replicate.
GM initially planned to build 125 for competition in world championship racing, according to the National Corvette Museum in Bowling Green, Ky.
But in early 1963, GM Chairman Frederic Donner canceled production after five had been built.
One of the five Grand Sports was listed at auction in January 2009 but the top bid of $4.9 million fell short of the reserve price, according to RM Auctions. The auction house later sold the roadster privately.
"They're unique cars. Hand-built, special-bodied," said Greg Wallace, spokesman for the GM Heritage Center. "It's probably the most valuable Corvette there is."
GM sells licenses to companies to build everything from replica vehicles to belt buckles. It is a lucrative revenue stream, Wilkinson said.
One company is licensed to build the 1963 Grand Sport.
Duntov Motor Co. in Texas has an exclusive deal to produce authentic 1963 Corvette Grand Sports, starting at $189,000. They build about four a year.
The company's Web site prominently displays the GM logo, designating it as an official licensed product, and acknowledges other unlicensed companies build Grand Sports -- but hints at a crackdown.
"We have been told these unauthorized manufacturers will be dealt with by the GM legal team," according to the Web site.
There are a number of companies worldwide that sell replica vehicles with varying legality.
Antique & Collectible Autos Inc. in Buffalo, N.Y., sells replica 1967 Cobra roadsters, but does not use the Cobra name or trademark.
"You can't do that," said Sonny Sajak, who is in charge of the company's sales.
For a while, the company sold replica Jaguars after obtaining the rights from the automaker.
"So it wasn't an issue," Sajak said.
Dennis Brunton of Bradenton , Fla., sells vehicles inspired by the Lotus 7 roadster. He designs each fiberglass part, rather than making a mold from existing Lotus 7 bodies. So there are significant differences between his model and the original.
Brunton's vehicles are bigger and longer, though they resemble the original Lotus 7.
"When you look at it, you know it when you see it," he said.
There is a legal principle guiding Brunton's approach, he said.
"My attorney described to me that if there's a spot on Bradenton Beach, a particular view, I cannot go there, make a picture of that view and say it is my intellectual property," Brunton said. "You have to go there and paint your own picture. You cannot stop anyone from making a car that looks similar, as long as they make it themselves."
On the Mongoose Web site, the company touts similarities between its replica and the original Corvette Grand Sport: "The GS frame, designed by Altair engineering, one of the largest aircraft-engineering firms in the country, replicates the original GS design, utilizes the suspension from 1988-96 Corvettes, with fully adjustable front and rear coil over shocks."
At the bottom of the Web site, in small print, it reads: "It is neither inferred nor implied that any item offered by Mongoose Motorsports is a product of, authorized by or in any way connected with any vehicle manufactured by General Motors. The Trademarks Corvette, Stingray, Chevrolet, GM and the Corvette emblems are Trademarks of General Motors Corporation."
GM pursued legal action against Mongoose because Wilkinson said the company is copying the Corvette's specific design and challenging the automaker's trademark.
"If we don't enforce this, we can lose control of our various trademarks," Wilkinson said.
rsnell@detnews.com (313) 222-2028
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From The Detroit News: http://detnews.com/article/20100321/...#ixzz0ioP1r4wp
Last Updated: March 21. 2010 1:12AM
GM sues Ohio company for rare 'Vette replicas
Robert Snell / The Detroit News
The 1963 Corvette Grand Sport roadster is the rarest and arguably most important Corvette model ever made. Only five were built, and they sell for millions at auction.
But an Ohio company is being sued by General Motors for churning out replica versions that sell for less than $90,000.
The lawsuit was filed this month in U.S. District Court against Mongoose Motorsports LLC of Cuyahoga Falls, Ohio, which specializes in building replica 1984-88 GTP models and the legendary Grand Sport.
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The lawsuit is a bid by GM to protect valuable and lucrative trademark rights to an iconic brand beloved by auto enthusiasts, and it sheds light on a niche industry.
GM is suing for trademark infringement, claiming the iconic brand has been irreparably harmed by the ersatz sports cars, which the automaker says copy the Corvette's design -- curve for curve.
"This is not an homage," GM spokesman Tom Wilkinson said.
GM wants a judge to bar the company from making and selling models using the Corvette design; order the destruction of all labels, signs and ads bearing Corvette trademarks; and let GM inspect Mongoose's office and financial records. GM also wants unspecified financial damages.
Mongoose's Web site is a parts bazaar where enthusiasts can buy a Corvette Grand Sport rear emblem for $99.95, or an entire replica sports car. But Mongoose is not licensed to use the Corvette trademarks, according to the lawsuit.
Mongoose operations manager Gary Krause Jr. was unaware of the lawsuit until being contacted by The Detroit News.
"That's news to me," he said during a brief phone interview. "I really would rather not go into any detail."
His company couldn't have picked a rarer Corvette to replicate.
GM initially planned to build 125 for competition in world championship racing, according to the National Corvette Museum in Bowling Green, Ky.
But in early 1963, GM Chairman Frederic Donner canceled production after five had been built.
One of the five Grand Sports was listed at auction in January 2009 but the top bid of $4.9 million fell short of the reserve price, according to RM Auctions. The auction house later sold the roadster privately.
"They're unique cars. Hand-built, special-bodied," said Greg Wallace, spokesman for the GM Heritage Center. "It's probably the most valuable Corvette there is."
GM sells licenses to companies to build everything from replica vehicles to belt buckles. It is a lucrative revenue stream, Wilkinson said.
One company is licensed to build the 1963 Grand Sport.
Duntov Motor Co. in Texas has an exclusive deal to produce authentic 1963 Corvette Grand Sports, starting at $189,000. They build about four a year.
The company's Web site prominently displays the GM logo, designating it as an official licensed product, and acknowledges other unlicensed companies build Grand Sports -- but hints at a crackdown.
"We have been told these unauthorized manufacturers will be dealt with by the GM legal team," according to the Web site.
There are a number of companies worldwide that sell replica vehicles with varying legality.
Antique & Collectible Autos Inc. in Buffalo, N.Y., sells replica 1967 Cobra roadsters, but does not use the Cobra name or trademark.
"You can't do that," said Sonny Sajak, who is in charge of the company's sales.
For a while, the company sold replica Jaguars after obtaining the rights from the automaker.
"So it wasn't an issue," Sajak said.
Dennis Brunton of Bradenton , Fla., sells vehicles inspired by the Lotus 7 roadster. He designs each fiberglass part, rather than making a mold from existing Lotus 7 bodies. So there are significant differences between his model and the original.
Brunton's vehicles are bigger and longer, though they resemble the original Lotus 7.
"When you look at it, you know it when you see it," he said.
There is a legal principle guiding Brunton's approach, he said.
"My attorney described to me that if there's a spot on Bradenton Beach, a particular view, I cannot go there, make a picture of that view and say it is my intellectual property," Brunton said. "You have to go there and paint your own picture. You cannot stop anyone from making a car that looks similar, as long as they make it themselves."
On the Mongoose Web site, the company touts similarities between its replica and the original Corvette Grand Sport: "The GS frame, designed by Altair engineering, one of the largest aircraft-engineering firms in the country, replicates the original GS design, utilizes the suspension from 1988-96 Corvettes, with fully adjustable front and rear coil over shocks."
At the bottom of the Web site, in small print, it reads: "It is neither inferred nor implied that any item offered by Mongoose Motorsports is a product of, authorized by or in any way connected with any vehicle manufactured by General Motors. The Trademarks Corvette, Stingray, Chevrolet, GM and the Corvette emblems are Trademarks of General Motors Corporation."
GM pursued legal action against Mongoose because Wilkinson said the company is copying the Corvette's specific design and challenging the automaker's trademark.
"If we don't enforce this, we can lose control of our various trademarks," Wilkinson said.
rsnell@detnews.com (313) 222-2028
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From The Detroit News: http://detnews.com/article/20100321/...#ixzz0ioP1r4wp
03-21-2010, 08:31 AM
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That is really a bunch of 
om GM's part. I really do not see how the production of a handful of cars a year is going to hurt the general in any way. You would think that GM could be much more productive by concentrateing on getting it's house and product offerings in order. The few royalty dollars that they could get will never match what the damn lawyers are costing them to pursue this law suit.
om GM's part. I really do not see how the production of a handful of cars a year is going to hurt the general in any way. You would think that GM could be much more productive by concentrateing on getting it's house and product offerings in order. The few royalty dollars that they could get will never match what the damn lawyers are costing them to pursue this law suit.
03-21-2010, 08:39 AM
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Thread Starter
That is really a bunch of om GM's part. I really do not see how the production of a handful of cars a year is going to hurt the general in any way. You would think that GM could be much more productive by concentrateing on getting it's house and product offerings in order. The few royalty dollars that they could get will never match what the damn lawyers are costing them to pursue this law suit.
om GM's part. I really do not see how the production of a handful of cars a year is going to hurt the general in any way. You would think that GM could be much more productive by concentrateing on getting it's house and product offerings in order. The few royalty dollars that they could get will never match what the damn lawyers are costing them to pursue this law suit.
"It's probably the most valuable Corvette there is."
GM sells licenses to companies to build everything from replica vehicles to belt buckles. It is a lucrative revenue stream, Wilkinson said.
One company is licensed to build the 1963 Grand Sport.
Duntov Motor Co. in Texas has an exclusive deal to produce authentic 1963 Corvette Grand Sports, starting at $189,000. They build about four a year.
The company's Web site prominently displays the GM logo, designating it as an official licensed product, and acknowledges other unlicensed companies build Grand Sports -- but hints at a crackdown.
"We have been told these unauthorized manufacturers will be dealt with by the GM legal team," according to the Web site.
There are a number of companies worldwide that sell replica vehicles with varying legality.
GM sells licenses to companies to build everything from replica vehicles to belt buckles. It is a lucrative revenue stream, Wilkinson said.
One company is licensed to build the 1963 Grand Sport.
Duntov Motor Co. in Texas has an exclusive deal to produce authentic 1963 Corvette Grand Sports, starting at $189,000. They build about four a year.
The company's Web site prominently displays the GM logo, designating it as an official licensed product, and acknowledges other unlicensed companies build Grand Sports -- but hints at a crackdown.
"We have been told these unauthorized manufacturers will be dealt with by the GM legal team," according to the Web site.
There are a number of companies worldwide that sell replica vehicles with varying legality.
Last edited by John Shiels; 03-21-2010 at 08:43 AM.
08-26-2010, 12:03 AM
#5
Safety Car
The few royalty dollars are GM's. All the other companies that pay like say ACP feel how if this company pays zero? I mean it is a few percent I think 3 in royalty. I get their point as if they let it go the flood gate will open on them. I have no clue why they let them go this long as the car has been around for a long while I think over 14 years if it is the same company when I first saw them.
Also, GM NEVER licensed/trademarked the Grand Sport name...they applied for it a few months ago.
Also, Mongoose NEVER advertised or represented their cars as "Corvette"...from their web site:
"The Mongoose Motorsports Grand Sport is a replica car based off the 1963-1964 Corvette race car built by General Motors to be a "Cobra Killer."
I think GM is going to have a hard time with this...I'm hoping that the little guy beats the big guy on this particular occasion.
08-26-2010, 04:59 AM
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We’ll admit it. The Corvette Grand Sport replicas produced by Mongoose Motorsports look pretty nifty, but they carry one noteworthy flaw: They’re not licensed by General Motors.
The Cuyahoga Falls, Ohio-based company, which produces both replicas of the 1963 Grand Sport and the 1984 Corvette GTP racer, is currently being sued by GM for trademark infringement. No single part of the Mongoose cars -- including the accurate “Corvette Grand Sport” emblems -- were licensed through GM channels, although engines are typically purchased directly through GM Performance Parts.
“This is not an homage,” GM spokesman Tom Wilkinson told The Detroit News. “If we don’t enforce this, we can lose control of our various trademarks.” A logical pursuit, really, but we’re wondering what took GM so long to move. Mongoose has been building Grand Sport replicas since 2000 and GTP clones since 2007.
According to the News, GM’s suit aims to prevent Mongoose from building cars with the Corvette’s design, but also moves to destroy and remove all marketing materials that use either the GM or Corvette name. Further, GM wants to inspect Mongoose’s office and financial records, and is seeking an unspecified amount in financial damages.
There is, however, still a way to experience a Grand Sport without shelling out millions to purchase one of the original five built. Duntov Motor Company, a subsidiary of Cobra replica builder Superformance, announced its own Grand Sport replica line late last year. The cars largely resemble those built by Mongoose, save for one exception: They’re fully licensed by GM and built with the automaker’s blessing.
Source: The Detroit News
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We’ll admit it. The Corvette Grand Sport replicas produced by Mongoose Motorsports look pretty nifty, but they carry one noteworthy flaw: They’re not licensed by General Motors.
The Cuyahoga Falls, Ohio-based company, which produces both replicas of the 1963 Grand Sport and the 1984 Corvette GTP racer, is currently being sued by GM for trademark infringement. No single part of the Mongoose cars -- including the accurate “Corvette Grand Sport” emblems -- were licensed through GM channels, although engines are typically purchased directly through GM Performance Parts.
“This is not an homage,” GM spokesman Tom Wilkinson told The Detroit News. “If we don’t enforce this, we can lose control of our various trademarks.” A logical pursuit, really, but we’re wondering what took GM so long to move. Mongoose has been building Grand Sport replicas since 2000 and GTP clones since 2007.
According to the News, GM’s suit aims to prevent Mongoose from building cars with the Corvette’s design, but also moves to destroy and remove all marketing materials that use either the GM or Corvette name. Further, GM wants to inspect Mongoose’s office and financial records, and is seeking an unspecified amount in financial damages.
There is, however, still a way to experience a Grand Sport without shelling out millions to purchase one of the original five built. Duntov Motor Company, a subsidiary of Cobra replica builder Superformance, announced its own Grand Sport replica line late last year. The cars largely resemble those built by Mongoose, save for one exception: They’re fully licensed by GM and built with the automaker’s blessing.
Source: The Detroit News
08-26-2010, 07:12 AM
#7
Safety Car
[QUOTE=John Shiels
But an Ohio company is being sued by General Motors for churning out replica versions that sell for less than $90,000.
Duntov Motor Co. in Texas has an exclusive deal to produce authentic 1963 Corvette Grand Sports, starting at $189,000. They build about four a year.
The few royalty dollars are GM's[/QUOTE]
Let's see, if the unlicensed company can build the car for 90k, but the licensed company builds the car for 189k then the licensing fee equals about 99k per car
GM is going to have a tough time with this one as both the GS and the GTP are long out of production (if I could even use such a word here). You don't hold on to a design forever (usually 25 years). About the best they'll get is a name change (no more use of Corvette). The rest is bluster and scare tactics.
But an Ohio company is being sued by General Motors for churning out replica versions that sell for less than $90,000.
Duntov Motor Co. in Texas has an exclusive deal to produce authentic 1963 Corvette Grand Sports, starting at $189,000. They build about four a year.
The few royalty dollars are GM's[/QUOTE]
Let's see, if the unlicensed company can build the car for 90k, but the licensed company builds the car for 189k then the licensing fee equals about 99k per car
GM is going to have a tough time with this one as both the GS and the GTP are long out of production (if I could even use such a word here). You don't hold on to a design forever (usually 25 years). About the best they'll get is a name change (no more use of Corvette). The rest is bluster and scare tactics.
08-26-2010, 07:26 AM
#8
Race Director
I believe you can thank two crybabies in Dallas for pushing GM to sue Mongoose.....It might even be the same two guys who are selling Chinese made brake rotors in "made in the USA boxes". as an old doctor once told me "GM licensed only means a license fee was paid. It has nothing to do with anything regarding quality, accuracy or country of origin. GM resto license scam is merely a marketing badge. Pay the fee and get the tag"....pure BS.
08-26-2010, 07:51 AM
#9
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Gary has asked them to allow Mongoose to sign a royalty deal...many times. GM ignored them. NOW they want to give someone else an "exclusive"...and not only that but Duntov bought Mongoose kits to start out. How screwed up is that?
Also, GM NEVER licensed/trademarked the Grand Sport name...they applied for it a few months ago.
Also, Mongoose NEVER advertised or represented their cars as "Corvette"...from their web site:
"The Mongoose Motorsports Grand Sport is a replica car based off the 1963-1964 Corvette race car built by General Motors to be a "Cobra Killer."
I think GM is going to have a hard time with this...I'm hoping that the little guy beats the big guy on this particular occasion.
Also, GM NEVER licensed/trademarked the Grand Sport name...they applied for it a few months ago.
Also, Mongoose NEVER advertised or represented their cars as "Corvette"...from their web site:
"The Mongoose Motorsports Grand Sport is a replica car based off the 1963-1964 Corvette race car built by General Motors to be a "Cobra Killer."
I think GM is going to have a hard time with this...I'm hoping that the little guy beats the big guy on this particular occasion.
08-26-2010, 09:18 AM
#10
Safety Car
They're going to Corvettes at Carlise...hope they make a few more sales there.
And as for the GTP, their advertising clearly states:
"The Mongoose Motorsports GTP is a replica car based off of the 1984-1988 Lola-built Corvette Grand Touring Prototype for the IMSA and Le Mans racing series.
Armed with the bodywork molds for the original car, Mongoose Motorsports designed a mid-engine GTP with c-5 suspension and a composite monocoque and tube frame chassis.
The Mongoose GTP can be purchased in pure kit form, ready-to-go as a "turn-key" car or steps between."
Since GM NEVER even produced the GTP...they don't have ANY leg to stand on with it.
Last edited by 1991Z07; 08-26-2010 at 09:44 AM.
08-26-2010, 01:23 PM
#11
Burning Brakes
Boo hoo for GM.
I see the little guy winning and Duntov whining because they paid for using GM IP to just hawk a name on their products to jack their price up. But that's my .02.
Afterall, it's all about what endorsements and name dropping.
Given two camo hats, both identical, one is unbranded for $5 and the other $20 and saying it's licensed from Remington(this is merely an example). Not that different a scenario here.
I see the little guy winning and Duntov whining because they paid for using GM IP to just hawk a name on their products to jack their price up. But that's my .02.
Afterall, it's all about what endorsements and name dropping.
Given two camo hats, both identical, one is unbranded for $5 and the other $20 and saying it's licensed from Remington(this is merely an example). Not that different a scenario here.
08-26-2010, 01:44 PM
#12
Safety Car
Boo hoo for GM.
I see the little guy winning and Duntov whining because they paid for using GM IP to just hawk a name on their products to jack their price up. But that's my .02.
Afterall, it's all about what endorsements and name dropping.
Given two camo hats, both identical, one is unbranded for $5 and the other $20 and saying it's licensed from Remington(this is merely an example). Not that different a scenario here.
I see the little guy winning and Duntov whining because they paid for using GM IP to just hawk a name on their products to jack their price up. But that's my .02.
Afterall, it's all about what endorsements and name dropping.
Given two camo hats, both identical, one is unbranded for $5 and the other $20 and saying it's licensed from Remington(this is merely an example). Not that different a scenario here.
With GM just NOW trying to copyright the name...after all these years and since Mongoose has been producing their cars for nearly 10 years now...I see no hope of GM getting a favorable outcome in court.
08-26-2010, 10:29 PM
#13
Burning Brakes
I think to be fair, GM has to require licensing to be the same for everyone. If one company has actually paid to use the name, all should have to pay for licensing. If GM doesn't think one company has represented the brand well, then they won't license them.
I personally think the Mongoose car looks far too kit-car-ish. I think it could have been done better, but then again, I'm also not a fan of a lot of Cobra replicas. I guess after seeing the real deals, the replicas just aren't the same!
Either way, I'm sure something will be worked out in this mess, with both sides walking away somewhat satisfied.
I personally think the Mongoose car looks far too kit-car-ish. I think it could have been done better, but then again, I'm also not a fan of a lot of Cobra replicas. I guess after seeing the real deals, the replicas just aren't the same!
Either way, I'm sure something will be worked out in this mess, with both sides walking away somewhat satisfied.
08-26-2010, 10:36 PM
#14
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GM has the lawyers and the money and that is a huge advantage. I think they charged 3% last time I heard for licensing.
