The Lotus name will not be appearing on the Formula One starting grid next season.

Malaysian carmaker Proton, which owns Group Lotus, says it will take all necessary steps to protect its rights to the Lotus name, including resisting any attempts by Tony Fernandes and 1 Malaysia Racing, or any other unauthorised person, to use the name in the 2011 F1 season.

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Fernandes and 1 Malaysia last year took a licence from Group Lotus to use the brand for the Lotus Racing team in the current F1 season. With Proton’s agreement, Group Lotus has now terminated this licence as a result of what it describes as “flagrant and persistent breaches of the licence by 1 Malaysia Racing Team, which were damaging to the Lotus brand”.

Group Lotus said it understands that Fernandes intends to rebrand the Lotus Racing F1 team to “Team Lotus” for the next season. Fernandes has indicated that one of his companies, Tune Group, has acquired the rights to the name Team Lotus from a business formerly owned by David Hunt.

Hunt claims to have acquired assets of Team Lotus, including its name, from the liquidator. Proton said, however, that Hunt has never raced as Lotus and that his attempt to acquire the name Team Lotus was ineffective.

The Malaysian carmaker said it a statement: “Group Lotus is the owner of all rights in the Lotus automotive brand including those relating to Formula 1.

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“There is and always has been only one Lotus, the Lotus started by Colin Chapman. From the beginning Lotus made road cars and raced racing cars. Until 1994, Group Lotus, the road car manufacturer and Team Lotus, which operated the Formula 1 team, were in common ownership with common directors. In 1994, Team Lotus failed and Lotus has not raced since.

“Neither 1 Malaysia Racing Team, nor any other company associated with Mr. Fernandes such as Tune Group Sdn Bhd or Team Lotus Ventures Limited, has the authority of Group Lotus to use any Lotus brand in the 2011 Formula 1 season. This includes the use of the brand Team Lotus.”

Proton chairman Sri Mohd Nadzmi Mohd Salleh, said: “We believe the Lotus brand to be one of the most valuable brands in Formula 1 today. 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 1 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.”

“To put it simply, Group Lotus is everything Lotus. The fact that 1 Malaysia Racing Team entered into an agreement with Group Lotus to use the brand means that both Mr. Fernandes and 1 Malaysia Racing Team recognises and acknowledges Group Lotus’ rights.”