Malaysian carmaker Proton will continue the "Lotus" brand name dispute with Tony Fernandes after the anouncement of his intention to brand his Formula One team 'Team Lotus' in 2011 and beyond.Fernandes' F1 team is currently called "Lotus Racing", with the name officially licensed by the separate British carmaker Group Lotus, whose parent company is Proton.
But, Group Lotus decided to ramp up its own motor racing efforts in co-operation with GP2 team ART next year owned by Nicolas todt. as it has been announced the Lotus Group - ART Grand Prix co-operation will enter feeder categories GP2 and GP3, and the group will continue its IndyCar foray in 2011 while designing a prototype sports car for the LMP2 category. Moreover, Group Lotus is upgrading its test track in Norfolk which will be eligible for "F1 testing", and decided retract the naming license for Fernandes' team due to license violations caused by T-shirt printing and Proton is also withdrawing its on-car sponsorship of Fernandes' team.
Lotus Racing chief executive Asmat explained:
"Unfortunately we never reached the point where we discussed extending that one year deal due to some very trivial points including t-shirt design approvals of all things... Initially there was good cooperation but then issues cropped up after that and it came to a point where they said we were detrimental to their brand and infringed their rights.
One of these was about producing t-shirts, which we were told did not follow correct procedures and they terminated our agreement about two weeks ago."
Proton Holdings Bhd chairman Datuk Seri Mohd Nadzmi Mohd Salleh who is a major shareholder in Group Lotus commented:
"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 One 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."
In order to retain the lucrative brand, Fernandes has bought the separate Team Lotus name from David Hunt, the younger brother of 1976 champion James. But Group Lotus said in a statement that it will resist Fernandes' intention to call his F1 team Lotus in 2011. Nazdi explained:
"Mr Hunt's attempt to acquire the name Team Lotus (in the 90s) was ineffective. Group Lotus is the owner of all rights in the 'Lotus' automotive brand including those relating to Formula One."
