From 1954 to 1994, Team Lotus was the racing arm of the famous sports car manufacturer Lotus Cars. The racing team competed primarily in Formula One ("F1"), considered the pinnacle of motor racing. Both the racing team and the car manufacturer were owned and operated by Colin Chapman, a gifted, highly innovative and colourful British engineer and designer.
The racing team was massively successful in the 1960s and 1970s, winning multiple world championships. In the 1960s, the Team Lotus cars ran in British racing green and bright yellow, but due to sponsorship from John Player Special Cigarettes, the cars were painted black and gold for most of the 1970s and 1980s. This colour scheme has developed an iconic status within the F1 fan base.
Chapman died in 1982 and the race team began a competitive and financial decline, eventually being sold to David Hunt, the brother of a former F1 champion. When the team wound down in 1994, Hunt maintained ownership of the rights to the TEAM LOTUS mark. There has been no Team Lotus in F1 since 1994.
The car manufacturer, Lotus Cars, was bought by Proton, a Malaysian company, in 1996 and came to be known as Group Lotus (divided into Lotus Cars and Lotus Engineering). They continue to manufacture and sell popular sports cars.
In 2010, the 1Malaysia Racing Team ("1MRT") entered a new team in F1, known as Lotus Racing. 1MRT took a 5-year licence from Group Lotus to use the "Lotus" name in F1. The team entered cars with the colour scheme of the original 1960s Team Lotus — British racing green and bright yellow — and drew on the legacy of Team Lotus at promotional events.
During the 2010 season, it was announced that Renault would supply Lotus Racing with engines for the 2011 season. In F1, a team is named for official entry purposes by its chassis manufacturer and engine supplier. As such, the team was expected to be known as "Lotus Renault." Also during the 2010 season, the team publicly expressed its intention to paint the cars black and gold for the upcoming 2011 season, likely to draw on the strong appreciation fans have for the John Player Special colour scheme of Team Lotus from the 1970s and 1980s.
However, in September 2010, Group Lotus terminated 1MRT's licence to use the "Lotus" mark in F1 on the basis of alleged breaches of the licence agreement. Shortly thereafter, Group Lotus reached a sponsorship agreement (and future option to purchase) with a different team, Renault F1, and announced that the team would be renamed Lotus Renault GP and run in black and gold colours in 2011. They have since unveiled and tested their black and gold car.
1MRT, in an attempt to preserve its right to run with the "Lotus" mark, in turn purchased the rights to the mark TEAM LOTUS from David Hunt. 1MRT unveiled plans to run in 2011 as Team Lotus, but Group Lotus instantly disputed 1MRT’s right to use any variation of the "Lotus" name in F1 given the termination of the licence agreement.
If the status quo had remained, two teams with black and gold cars would be running in F1 in 2011 as "Lotus Renault." However, 1MRT (now Team Lotus) unveiled and tested their 2011 car in a green and yellow colour scheme, publicly stating that it would be ludicrous to run with the same colours and name as another team. Nonetheless, it remains that currently two F1 teams named “Lotus,” both using Renault engines, are scheduled to start the season.
The situation, including the potential confusion between the two teams, has reportedly troubled sponsors. This is exacerbated by the fact that the Renault F1 team (now Lotus Renault GP) is traditionally a competitive team that challenges for wins and world championships, whereas 1MRT/Lotus Racing (now Team Lotus) was very uncompetitive in its debut season. Further, the Chapman family, still active in promoting the legacy of the original Team Lotus and Lotus Cars, has publicly put their support behind Group Lotus, despite having played a role in 1MRT/Lotus Racing events during the 2010 season.
In an effort to seek clarity on the naming issue before the start of the season, 1MRT instituted proceedings for wrongful termination of the licence against Group Lotus in the English High Court, seeking a further declaration that it is entitled to use the Team Lotus name in F1. Group Lotus brought an application for summary judgment, which was dismissed on January 24th, 2011, by Justice Peter Smith.
1MRT has reportedly rejected a £6 million offer to settle the dispute. An impasse in arriving at a settlement is a clause in the Concorde Agreement between teams and Formula One Management ("FOM") over the payment of television revenues — the payment of revenues is forfeited if the chassis name is changed the following season. As such, 1MRT, whose chassis was labelled "Lotus" in 2010, reportedly stands to lose as much as £37 million in television rights from the 2010 season if "Lotus" is not its chassis name in 2011.
The hearing on the merits is set for March 21st, 2011. Due to the recent cancellation of the Bahrain Grand Prix, the hearing is scheduled before the start of the season on March 27th, 2011, in Australia. There may only be one "Lotus" team in 2011 after all.
Jordan D. Scopa, Toronto
Follow the links to visit the official websites of Team Lotus and Lotus Renault GP.
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