Proton say Lotus Racing has no right to use “Team Lotus” name

Posted on | Author Keith Collantine

Heikki Kovalainen, Lotus, Spa-Francorchamps, 2010

Group Lotus owners Proton have denied that Tony Fernandes has the right to re-brand his team as “Team Lotus”.

In a statement released today the company said:

Proton will support Group Lotus in taking all necessary steps to protect its rights in the “Lotus” name, including resisting any attempts by Mr. Fernandes or his companies, or any other unauthorised person, to use the “Lotus” name in the 2011 Formula 1 season.

Update: Lotus Racing bringing High Court action over right to use ??Team Lotus?? name

Here is the full statement from Proton:

There is and always has been only one Lotus, the Lotus started by Colin Chapman. From the beginning Lotus made road cars and raced racing cars. Until 1994, Group Lotus, the road car manufacturer and Team Lotus, which operated the Formula 1 team, were in common ownership with common directors. In 1994, Team Lotus failed and Lotus has not raced since. Since 1994, David Hunt has claimed to have acquired assets of Team Lotus, including its name, from the liquidator. He has never raced as Lotus. Mr. Hunt?s attempt to acquire the name Team Lotus was ineffective. Group Lotus is the owner of all rights in the “Lotus” automotive brand including those relating to Formula 1.

Last year, Tony Fernandes and 1 Malaysia Racing Team recognised this by taking a licence from Group Lotus to use the “Lotus” brand for the “Lotus Racing” team in the current Formula 1 season. With Proton?s agreement, Group Lotus has now terminated its licence to 1 Malaysia Racing Team to use the “Lotus Racing” brand in the 2011 and future Formula 1 seasons as a result of the flagrant and persistent breaches of the licence by 1 Malaysia Racing Team, which were damaging to the “Lotus” brand.

Following that termination, neither 1 Malaysia Racing Team, nor any other company associated with Mr. Fernandes such as Tune Group Sdn Bhd or Team Lotus Ventures Limited, has the authority of Group Lotus to use any “Lotus” brand in the 2011 Formula 1 season. This includes the use of the brand “Team Lotus”.

Group Lotus understands that Mr. Fernandes intends to rebrand the current “Lotus Racing” Formula 1 team to “Team Lotus” for the 2011 Formula 1 season. Mr. Fernandes indicates that Tune Group has acquired the rights to the name “Team Lotus” from a business formerly owned by David Hunt called Team Lotus Ventures Limited. Group Lotus believes these rights to have no proper legal foundation, a fact of which Mr. Fernandes was well aware when his company purchased them.

Proton will support Group Lotus in taking all necessary steps to protect its rights in the “Lotus” name, including resisting any attempts by Mr. Fernandes or his companies, or any other unauthorised person, to use the “Lotus” name in the 2011 Formula 1 season.

Dato? Sri Mohd. Nadzmi Mohd. Salleh, Chairman of Proton Holdings Berhad and Group Lotus commented, “We believe the Lotus brand to be one of the most valuable brands in Formula 1 today. We are the owners of this brand, and will take all necessary steps to protect it. Tony Fernandes has no rights to use the Lotus brand in the 2011 Formula 1 season, and we will strongly resist any attempts by him to use our brand without our permission and will withdraw our sponsorship of the Lotus Racing team.”

??To put it simply, Group Lotus is everything Lotus. The fact that 1 Malaysia Racing Team entered into an agreement with Group Lotus to use the brand means that both Mr. Fernandes and 1 Malaysia Racing Team recognises and acknowledges Group Lotus? rights,?? he added.

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Image ?? Lotus F1