A court battle is looming over the Lotus name which has become synonymous with the country's first locally-backed Formula One team.
On Tuesday, Lotus Racing Chief Executive Officer Riad Asmat denied Proton Holdings Bhd's contention that Lotus Racing had no right to use the name and said Lotus Racing intended to clear the issue.
"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," he said in a statement on Tuesday.
"As Tune Group has now bought Team Lotus Ventures it means we can now use the Team Lotus name for 2011 and beyond. We are all delighted we can go into 2011 with total confidence in what we own, and what we can take to the track," he said.
Proton Holdings Bhd had said Monday its subsidiary, Group Lotus, had terminated its licence to the 1Malaysia Racing Team, effectively barring them from using the 'Lotus Racing' brand or any Lotus brand for the 2011 season and future seasons of Formula One, alleging "flagrant and persistent breaches of the licence".
The national car company's statement late Monday came in the wake of an announcement by Lotus Racing team principal Datuk Seri Tony Fernandes in Singapore on Friday that his Formula One team would be renamed Team Lotus for the 2011 season.
It was reported that the team had acquired the 'Team Lotus' brand from owner David Hunt, a former British racing driver who owned Team Lotus Ventures Ltd.
Malaysia's privately-funded racing team is jointly-owned by Tune Group co-owner Datuk Kamarudin Meranun, Naza Group chief executive officer SM Nasarudin SM Nasimuddin and Fernandes.
However, Proton claimed that there was no proper legal foundation to those rights and that Hunt's attempt to acquire the name 'Team Lotus' was ineffective.
Proton Holdings and Group Lotus chairman Datuk Seri Mohd Nadzmi Mohd Salleh said they were the owners of the Lotus brand and would take all necessary steps to protect it.
"Tony Fernandes has no right to use the Lotus brand in the 2011 Formula One season and we will strongly resists any attempt by him to use our brand without our permission and will withdraw our sponsorship of the Lotus racing team," he said.
However, Lotus Racing is not taking the accusations lying down.
Its chief executive officer Riad Asmat, who was formerly with Proton, said they were confident of their rights, adding that Proton's public statement gave them a chance to reveal the actual situation.
"We are glad that this has been brought up by Proton in the public. It will give us a chance to show to the shareholders, government and the public the exact situation.
"We are confident of our rights. I have worked in Proton for many years as the special adviser to the chief executive officer and I am fully conversant on this matter. A full release will follow," he said in a statement Monday night.-tradingmarkets.
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