Use of Lotus name
The team originally took a licence from Group Lotus (owner of Lotus Cars) that allowed them to use the Lotus name for the 2010 season.[62] In September 2010, Group Lotus, with agreement from their parent company Proton, terminated the licence for future seasons as a result of what it called "flagrant and persistent breaches of the licence by the team".[62]
On 24 September 2010 Tony Fernandes announced in a press release that his Tune Group had acquired Team Lotus Ventures Ltd, the company led by David Hunt since 1994 when Team Lotus had stopped competing in Formula One, and with it full ownership of the rights of the Team Lotus brand and heritage. The team confirmed that they would be known as Team Lotus from 2011 onwards.
In September 2010, it was announced that Tony Fernandes would be expanding his interests to include a GP2 Series team, to be known as Team Air Asia, named for one of Fernandes's companies, Air Asia. There is already a Lotus Racing supported team known as Lotus Junior Team in the Formula Renault 3.5 Series. However, while it was announced that Team Air Asia would be joining the GP2 grid, fellow GP2 team ART Grand Prix announced a joint venture with Lotus Cars, with their GP2 and GP3 teams to be renamed "Lotus ART" from 2011 onwards in a similar arrangement to the one that has seen Lotus Cars sponsoring Takuma Sato and KV Racing Technology in the IndyCar Series.
Lotus Cars launched legal action against Lotus Racing, claiming that Tony Fernandes did not have the rights to use the Lotus name because David Hunt was never in a position to sell them.[63] Some commentators even went so far as to suggest that this was an attempt by Lotus Cars to force Fernandes to stop using the Lotus name with a view to launching a second Lotus effort in Formula 1 in conjunction with ART Grand Prix; ART had previously submitted a tender to join the 2011 Formula One grid, but withdrew after failing to secure a budget. With the support of Lotus Cars, ART would have the funding needed to enter Formula One.[64]
On 27 September 2010, Proton issued a statement saying that Group Lotus owned all rights to the Lotus name in the automotive sector, including Formula One, and that Fernandes has no rights to use the brand in the 2011 season.[62] Fernandes did however state that the team will go to court if necessary to protect the brand name.
On 8 December 2010, Group Lotus announced that they had bought a stake in Renault F1 and had agreed to become title sponsor, with the French car maker retiring to the role of engine supplier. The team would be known as "Lotus Renault GP", creating a unique situation whereby the 2011 Formula One grid would see two teams known as Lotus and powered by Renault engines lining up to race. To further the confusion, Group Lotus announced that the 2011 Lotus Renault GP cars would carry a black and gold livery reminiscent of the John Player & Sons liveries previously used by Colin Chapman's Team Lotus in the 1980s, paralleling plans by Tony Fernandes to race in 2011 with a JPS-inspired livery. However, on 11 December 2010, Tony Fernandes stated that it was "ludicrous" to run his squad in the same colours as Lotus Renault GP, and thus his team would continue with their present green and yellow colour scheme in .[65]
On 23 December 2010, Clive Chapman – the son of Lotus founder Colin Chapman – released, on behalf of the Chapman family – including Colin's widow, Hazel – a statement expressing their unequivocal support for Group Lotus in the ongoing dispute over the use of the Lotus name in Formula One and declaring that the family would "prefer that the Team Lotus name should not be used in Formula One."[66]
On 24 January 2011, a judge at the High Court of Justice in London set a trial date over the naming dispute for 21 March, which means that two teams – Team Lotus and the Group Lotus-sponsored Renault outfit – began the season with Lotus signage.[67] The case did not revolve around the ownership of the name, but rather over the termination of the contract between Fernandes and Group Lotus. Lotus Racing completed the 2010 season with a name used under licence from Group Lotus. The licence was terminated after one year, with Group Lotus claiming that Fernandes had breached the terms of the contract in using the name and image of Lotus Cars, and so were free to terminate it; Fernandes, on the other hand, claimed that Group Lotus had wrongfully terminated the contract. The purpose of the March hearing is to determine whether or not the licensing contract was wrongfully terminated.[68] The hearing over the ownership of the Team Lotus name took place later in the year.
At the launch of the Renault R31 in Valencia, Spain, Lotus Renault GP owner Gérard Lopez expressed frustration over the situation and suggested that the dispute was not over the rights to a team name or the heritage of the Lotus name, but over the television rights paid out annually to the teams by Formula One Management. Commentators suggest that Fernandes and his team would be eligible for as much as $36 million for finishing tenth in the 2010 World Constructors' Championship standings, which they would stand to lose if they changed their name.[69]
On the eve of the High Court hearing in March 2011, David Hunt claimed that Tony Fernandes had refused to honour his contractual obligations in purchasing the Team Lotus name and was attempting to renegotiate the contract with terms that Hunt described as "ludicrous".[70] Hunt issued an ultimatum, stating that if Fernandes did not honour the original contract, then Hunt would not support him in his case against Group Lotus, which he claimed had "[some] potentially serious holes".[70] Team Lotus went into the 2011 Australian Grand Prix with David Hunt's support in their case against Group Lotus having made a U-turn on his previous criticisms of Fernandes and the team.[71]
Result
On 27 May 2011, the High Court ruled that the team would be able to continue using the "Team Lotus" name and Team Lotus roundel, but could not use "Lotus" on its own. The ruling confirmed Fernandes as the owner of the Team Lotus name, having bought the rights to the name from Hunt. The court ruling stated that Group Lotus had sole right to use the name "Lotus" on its own, and could enter Formula One using "Lotus" for a team name, the black and gold livery, and the Lotus roundel.[72][73] Team Lotus was told to pay damages after being found in breach of the licensing agreement made with Group Lotus, which had seen the team compete as "Lotus Racing" during the 2010 season.[72][74]
In July 2011, the two parties returned to the High Court, seeking to resolve the issue altogether. Justice Peter Smith expressed discontent towards Tony Fernandes and Team Lotus after Fernandes had made no mention of his purchase of Caterham Cars during the initial hearings. Furthermore, Fernandes had claimed that Caterham would remain entirely separate from Team Lotus, but a promotional video for the company showing Fernandes wearing Team Lotus apparel. Justice Smith commented that had this material been submitted at the original hearing, then it would have had the potential to influence him enough to rule differently in May.
