Ryder System Inc. announced it has reached a favorable out-of-court settlement of its trademark infringement litigation against Budget Group Inc.
The settlement resolves the longstanding brand confusion in the marketplace since the 1996 sale of Ryder's consumer "yellow" truck rental business, which included limited use of the Ryder mark.
The settlement immediately terminates Budget's use of the Ryder name/trademark in advertising, location signage, the Internet, telephone communications and on all company identifying materials.
Budget also agreed to accelerate the removal of the Ryder name/trademark from all existing consumer "yellow" trucks beginning in January 2003, with conversion of the entire fleet by the end of 2004. Additionally, the settlement awards Ryder a $1.25 million cash payment.
"We are pleased with the settlement which returns the Ryder brand to our current lines of business, commercial transportation and logistics services worldwide," said Gregory T. Swienton, Ryder's chairman, president and chief executive officer
Ryder operates a commercial truck rental and leasing fleet of more than 170,000 vehicles, one of the largest operations in the world. The company sold its consumer "yellow" truck rental division in 1996. Those business operations were subsequently purchased by Budget and operated under the name "Ryder TRS" pursuant to a trademark license agreement signed in connection with the 1996 sale.
In March 2002, Ryder terminated the trademark license agreement and filed suit in federal court in New York against Budget and the company operating as Ryder TRS. In July 2002, Budget filed for federal bankruptcy protection. Cendant Corp. purchased substantially all of Budget's assets out of bankruptcy. Ryder's settlement agreement with Budget and Cendant is aimed at ending the brand confusion the company has experienced in the marketplace since the 1996 sale.