Lotus Racing Fights Back, Brings Team Lotus Dispute To British Court

The spat between Proton and Tony Fernandes' 1 Malaysia Racing Team is quickly turning bitter, with the battle for the Lotus name set for a British High Court date. With Proton and Group Lotus laying claim to all rights regarding the Lotus brand which extends to Team Lotus, Lotus Racing, a name used via a one-year license from Group Lotus, attempts to clear up the air once and for all.

In response to Proton's assertion that Team Lotus Ventures Ltd does not own the Team Lotus name, hence ruling out the use of that name by Lotus Racing next F1 season, CEO Riad Asmat reiterated that the facts are clear and beyond dispute: David Hunt bought the assets including the name of Team Lotus in 1994; Fernandes-owned Tune Group Sdn Bhd buying over Team Lotus Ventures Ltd effectively transfers the right to use the Team Lotus name as well.

Asmat believes moving the dispute to the courts is the best long-term solution: “However, given that this is contested by Group Lotus we think now is the time to clear this matter up so there can be no further arguments. We have therefore today issued proceedings in the English High Court for a declaration that Team Lotus Ventures has the rights to use the Team Lotus name and everything associated with that brand in relation to Formula One”.

Proton/Group Lotus knew for a fact that Hunt is the rightful owner of the Team Lotus brand and its rights, Asmat reveals, as evidenced by the license agreement between 1 Malaysia Racing Team and Group Lotus. “In the licence agreement between 1 Malaysia Racing and Group Lotus, the use of the Team Lotus name is expressly prohibited as they had agreed contractually, as long ago as 1985, that they had no rights to use that name”, he said.

As further proof that all rights of the Team Lotus brand belong to Hunt, Asmat says that Proton/Group Lotus had made one official offer for Team Lotus Ventures Ltd, while Group Lotus had also attempted—unsuccessfully—to revoke the Team Lotus trade marks at the Trade Mark Registry.

The stakes are made higher for the two parties with interests extending beyond the Formula One: Fernandes' newly-created Team Air Asia will be competing in the GP2 and GP2 Asia from 2011 to 2013; Proton's Lotus Motorsport will be providing technical and engineering support for the current champion ART in GP2, GP2 Asia and GP3 from next year onwards. And both want the right to flaunt the legendary Team Lotus name.