Interesting... The Wikipedia page for Crazy Taxi talks about their lawsuit with Simpsons Road Rage in 2001, for using the overhead arrow among other complaints. But makes no mention at all of Midnight Club, who by 2005 when I got Midnight Club 3 DUB Edition was using that same overhead arrow for in-race directions. I don't see screenshots of Midnight Club 1 or 2 having the arrow but I can guarantee from personal experience that MC3:DUB did have them. I wonder what happened in those four years that made Rockstar not afraid to use that mechanic, especially as this section on the Crazy Taxi page states

The case, Sega of America, Inc. v. Fox Interactive, et al., was settled in private for an unknown amount. The 138 patent is considered to be one of the most important patents in video game development.