Press Release Details

AutoNation USA 'Pleased' with Court Decision Jury Says Company Did Not Violate CarMax Trademark

Oct 26, 1998

FORT LAUDERDALE, Fla., Oct. 26 /PRNewswire/ -- Republic Industries' (NYSE: RII) President and Co-Chief Executive Officer Steven R. Berrard said today that he is "pleased" that a jury in a Florida federal court has affirmed the company's right to the unrestricted use of its "AutoNation USA" brand name.

In its decision the jury found that a lawsuit by CarMax alleging an infringement by AutoNation USA on "AUTOMATION," the name of the CarMax computer inventory system, was without merit, based upon the jury finding that CarMax had "no protectable interest" in the AutoNation USA name.

"The jury is saying that we have the right to use the AutoNation USA name without interference, and we intend to do just that," Mr. Berrard said.

Disregarding the court's directions, and despite finding that Republic did not infringe CarMax's trademark, the jury decided to award CarMax $50 million, payable over five years. Mr. Berrard said AutoNation USA will immediately file the appropriate motions to correct this error.

Republic Industries, Inc. operates subsidiaries in the automotive retailing, automotive rental and solid waste industries. The Company owns the nation's largest group of franchised automotive dealerships and operates the AutoNation USA used vehicle megastores chain. Republic also owns and operates National Car Rental System, Inc., Alamo Rent-A-Car, Inc. and CarTemps USA.

SOURCE Republic Industries, Inc.