STURGIS, S.D. – The Sturgis City Council has voted to terminate its license agreement with SMRi.
SMRi has been the city’s sole licensee for sponsorship and other minor categories.
The relationship brought in millions of dollars over the years, because SMRi held copyrights on rally-related logos and merchandise.
Due to a court ruling that has resulted in fewer intellectual properties held by SMRi, the city decided to terminate its agreement with the group. The agreement wasn’t to expire until 2026.
Sturgis officials say given the recent difficulties SMRi has experienced and the likelihood that the litigation in the federal courts will continue, Sturgis City Manager Daniel Ainslie says the city is ready to proceed on a new path.
Sturgis Mayor Mark Carstensen says the city could establish its own logo, tagline and marketing that it could use for all of the City owned assets.
“I feel quite blessed we’re at where we’re at to find an end for this chapter and as we move forward. Our intellectual property that we own is what we will use to provide that exclusivity and sales for sponsorship. But, in order for that to happen, our relationship with SMRi would have to be closed.”
SMRi was in favor of the termination, which was approved unanimously by the council.
