MILAN, Italy: Lambretta Consortium, the sole and exclusive owner and holder of the Lambretta trade name and trademarks, has today named Scooters India Limited in connection with the unlawful licensing of Lambretta trademark rights in the European Union.

Following the court decision from the European Union Office of Harmonization (Trademarks and Designs Department) regarding the use of the Lambretta trademark the department has finally ruled that Lambretta Consortium hold the rights to use the Lambretta trade mark in automotive categories throughout Europe, where Scooters India Limited previously granted rights to a third party. The dispute has lasted for nearly 5 years.

Lambretta Consortium has made a preliminary estimation on the damage originated by the unlawful licensing. The final claim is being expected to exceed EUR10 million.

Lambretta Consortium is negotiating with Mr Ajai Kumar, Chairman of the Board of Scooters India to explore options to find an amicable settlement. Lambretta Consortium has stated that it will proceed with its claim if parties cannot enter into an agreement within due time.

The current development is a major setback for Scooters India Ltd., 95% owned by the Government of India. The company has been recently been put up for sale. The government owns 95% stake in the company. After posting losses of Rs 22 crore in financial year 2009-10, the government came up with a turnaround plan and has decided to divest up to 74% stake in the company and is looking out for joint venture partners. Currently, they only manufacture passenger and goods carriage three-wheelers under the brand Vikram, and this claim threatens to overshadow the sale.

W: http://www.lambretta.com