English court rules on Lotus naming rights

What is in a name? A lot, apparently, especially if that name is Lotus, which has dragged Group Lotus and the 1Malaysia Racing Team to a protracted court battle over the rights to use the ‘Team Lotus’ name in Formula 1.

It was ruled last week by Mr Justice Peter Smith that Group Lotus retains the rights to the ‘Lotus’ name and the iconic black & gold livery in the realms of Formula One. The judge also ruled 1Malaysia Racing Team as having breached the license agreement with Group Lotus and will have to pay damages as a result. Group Lotus also continues to retain all their trademarks and have full rights to the ‘Lotus’ marque for the road cars.

However, the judge also ruled that Team Lotus Ventures Limited’s trade mark registrations in the name of Team Lotus are cancelled as a result of non-use. The judge also ruled that Group Lotus and Team Lotus, being separate entities, have separate pools of goodwill and are not confused with one another. As such, the 1Malaysia Racing Team crucially retains the ‘Team Lotus’ naming rights.

In a statement issued immediately after the judgment was announced, Group Lotus has declared their intent to file an appeal for the ‘right to use the Lotus brand in Formula 1′ to be ‘clarified once and for all’. Sarah Price, Head of Legal, Group Lotus plc said, “The on-going dispute with Team Lotus and associated companies has been a cause for concern for all at Group Lotus. Despite the detailed judgment there are issues which still require clarification and we remain committed to obtaining this much needed clarity for the many fans of the Lotus marque – we are extremely grateful for their continued support. The decision to appeal has not been taken lightly.”

Countering, Team Lotus Principal Tony Fernandes noted that, “We are all pleased that it has been clarified that we are the rightful owners of Team Lotus. We have always been confident that the factual evidence we presented would lead to this decision and today’s judgment confirms that belief. We are of course disappointed about the decision that Group Lotus was entitled to end the our licence agreement in 2010. We entered into that contract on the basis that we were beginning a long-term partnership with Group Lotus but unfortunately they then used technical breaches of the merchandising pre-notification process to bring the licence and our partnership to an end. However, my fellow shareholders and I are firm believers that when one door closes another door opens. In the early days of our agreement we realised its termination was inevitable and as events have unfolded the end of the licence has proved positive for us, with many new avenues being opened up as a result.”

KON

See also:
– Proton says no ‘Team Lotus’
– ‘Team Lotus’ naming rights: Lotus Racing counters