The lawsuit, which was filed in U.S. District Court, accuses Kanye West of trademark infringement and unauthorized use of the Evel Knievel image by using vulgar, sexual and racially questionable content.
Knievel, 68, claims the video disgraced him and accuses Kanye West of ripping his image apart.
The video, which stars actress Pamela Anderson Lee, features Kanye West as a fictional stuntman named "Evel Kanyevel" attempting to jump a canyon. Evel Knievel's lawyer Richard Fee claims the video is a recreation of Knievel's failed attempt to jump the Snake River Canyon in Western Wyoming in 1974.
"In my opinion, this video maybe reflects West and his way of life, but it's sure not mine," Knievel told the St. Petersburg Times. "I don't want my children or my grandchildren associated with this kind of thing…I want it stopped."
Knievel is also seeking royalties and an injunction to prevent Kanye West from using Evil Knievel's image in the future. The single and video for "Touch the Sky" are taken from West's triple platinum album, Late Registration.
West and the "Touch the Sky" video were subject of controversy last month at the MTV Europe Music Awards.
The rapper burst onto the stage as Justice and Simian were being awarded Best Video and went into a tirade over losing in the category.
West later apologized to Justice and Simian for his antics.