Team Lotus naming rights debate rages on
As Lotus Racing gears up for its 2011 Formula 1 makeover, the team is facing controversy over owner Tony Fernandes’ decision to usher in the old name, Team Lotus.
In a complete overhaul which involves changing engine manufacturers, upgrading the body and renewing technical contracts, the Malaysian-owned team is seeking a restoration of Lotus’ former glory, in which
it experienced a golden age of racing victories. But the Group Lotus parent company, Proton, protests the action, claiming legal rights to all uses of the name.
“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,” claimed Proton chairman
Dato' Sri Mohd Nadzmi Mohd Salleh.
The company argued that Fernandes’ use of the Lotus brand by 1 Malaysia Racing Team, which purchased the licence to the name, was damaging to the legacy of Lotus and would spoil its reputation.
“We believe the Lotus brand to be one of the most valuable brands in Formula 1 today,” was his justification, adding that, “We are the owners of this brand, and will take all necessary steps to protect
it.”
The company revealed the termination of its licence to 1 Malaysia Racing, saying that, “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."
“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.”
Tensions have been rising since Group Lotus announced their deal with GP2 team ART, which would compete against Fernandes’ AirAsia team.
But Lotus Racing CEO, Riad Asmat, is adamant that the team has rights to the name, protesting Proton’s resistance.
“As Tune Group has now bought Team Lotus Ventures, it means we can now use the Team Lotus name for 2011 and beyond,” Asmat revealed.
“We are all delighted we can go into 2011 with total confidence in what we own, and what we can take to the track. 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 1. Racing under the Team Lotus name from 2011 means our licence with Group Lotus has now come to an end.”
Asmat acknowledged that the rights to the name had been debatable, but that the company had acquired them ethically and with a complete understanding of the legalities surrounding it.
“[The 1985 agreement to prohibit use of the name] was obviously something we had enormous respect for, and made no attempt to change until we could do so rightfully, and with a very clear understanding
of what we had acquired in Team Lotus Ventures,” Asmat said. “So now, the licence we ran under this year has been withdrawn by Group Lotus, and while we accept that this obviously means we have reached the end of that chapter, it opens up a new and very exciting
one for everyone in our team. There will have to be some discussions with Proton and Group Lotus about the entitlement to terminate the licence.”
The decision to restore the name has earned mixed reviews from fans and critics, with some eager to relive a ghost of the beloved British team, while others object to tainting the legendary name. But for
Fernandes, adopting the name will secure the future for Lotus, which has endured a troubled run in the F1 circuit in recent years.
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