Monday, May 30, 2011

Proton unit wins right to use "Lotus" name in F1

KUALA LUMPUR: PROTON HOLDINGS BHD [] unit Group Lotus plc has won the right to use the name 'Lotus' within Formula 1, and entitled to race in its historic black and gold livery.

In a filing to Bursa Malaysia Securities on Monday, May 30, Proton said the Chancery Division of the English High Court had on last Friday, May 27 given its ruling in the dispute between Group Lotus and 1 Malaysia Racing Team Sdn Bhd, Datuk Seri Tony Fernandes and others in respect of the right to use the name "Lotus" in Formula 1.

Proton said that in December 2009, Group Lotus had issued a Licence to 1MRT to use the "Lotus Racing" name in Formula 1 Racing.

Following breaches by 1MRT, Group Lotus issued notice to terminate the said Licence in August 2010.

The termination of the said Licence under the Licence Agreement prevents 1MRT from using the "Lotus" name including for the 2011 Formula 1 season.

1MRT however made known its intention to continue using the "Lotus" name in Formula 1 for the 2011 season despite the termination of the said Licence and initiated proceedings against Group Lotus in the English Court.

Group Lotus then in October 2010 issued proceedings in the English High Court against 1MRT, Fernandes personally, and the companies associated with him, including Team Lotus Ventures Limited (TLV), its parent company Tune Group Sdn Bhd and 1Malaysia Racing Team (UK) Limited.

Proton said the Court had also ruled that 1MRT was in breach of the Licence granted to them by Group Lotus to race in Formula 1 under the name Lotus Racing and had awarded Group Lotus damages in respect of that breach.

It said the Court ruled that TLV's trade mark registrations in the name of Team Lotus were cancelled as a result of non-use; Group Lotus trade mark registrations were unaffected; and that Group Lotus had the right to use the Lotus marque on cars for the road.

'Further, the Judge also found that Team Lotus has the right to continue to race in Formula 1 under the name Team Lotus but the effect of the Judgment is that only Group Lotus can use the name "Lotus" on its own in Formula 1,' it said.

Proton said it was concerned that this aspect of the Judgment would cause confusion in the eyes of spectators and the wider public.

'Accordingly, Group Lotus is seeking leave to appeal so that the right to use the Lotus brand in Formula 1 is clarified once and for all in the interest of the sport and the fans.

'Proton and Group Lotus are confident of success on appeal,' it said.

No comments:

Post a Comment