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Alinghi and BMW Oracle to keep talking

Feuding sailing teams Alinghi and BMW Oracle Racing will resume mediated talks after a New York judge on Tuesday declined BMW Oracle's request to hold Alinghi in contempt of court.

Geneva-based Alinghi and California-based syndicate BMW Oracle have been engaged in a legal dispute for more than two years over the 33rd edition of the America’s Cup, yachting’s top prize.

Under America’s Cup rules, a challenger proposes to race the defending champion, and together they plan the terms of the next race. Alinghi is the defending champion.

Planning talks broke down last week when BMW Oracle, which sails under the colours of the Golden Gate Yacht Club and is backed by software tycoon Larry Ellison, accused Alinghi of unfairly changing the rules and asked a judge to find the team in contempt of court for doing so.

On Tuesday, New York State Supreme Court Justice Shirley Kornreich declined to hold Alinghi, which is backed by biotechnology billionaire Ernesto Bertarelli and the Société Nautique de Genève, in contempt of court.

“There is no basis for contempt,” she said.

The next America’s Cup competition had been scheduled for this year but is slated to take place on February 8, 2010.

Alinghi has until August 8 to announce its chosen venue, and on Tuesday it appeared likely that a decision could prompt more disagreement between the rivals.

Alinghi argues they can hold the race anywhere in the world, while BMW Oracle has cautioned against choosing a venue that might be “dangerous” to its sailors.

The Swiss team launched a giant catamaran in July to challenge BMW Oracle’s massive trimaran, which launched in 2008.

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