Force India - Lotus court hearing set for 2012

The English High Court has set aside week commencing 16 January 2012 to hear the intellectual property infringement claim by Force India F1 Team Ltd. against a) 1 Malaysia Racing Team SDN BHD, b) 1 Malaysia Racing Team (UK) Ltd, c) Michael Gascoyne and d) Aerolab Srl.

Separate criminal proceedings are currently ongoing in Italy in respect of the wrongful disclosure of confidential information, as a consequence of the filing by Force India F1 Team Ltd. of a complaint with the competent authorities. In respect of these proceedings, articles in the Italian press have recently revealed that Tony Fernandes, Mike Gascoyne and Jean Claude Migeot have been formally charged.

No further comment will be made until the hearings have concluded and a decision announced.

Background

Force India F1 Team Ltd. had a contractual agreement with Aerolab Srl. throughout the 2008 and 2009 seasons, under which Aerolab Srl. would provide services for the development of aerodynamic components of the VJM02 and VJM03 F1 models, in cooperation with the team’s own aerodynamic department in Brackley, UK.

However, Force India’s collaboration with Aerolab Srl. ceased in August 2009 due to Force India’s concerns about a breach of confidentiality by Aerolab Srl.

Aerolab Srl. subsequently started civil proceedings in Italy and in the UK against Force India F1 Team Ltd. for the illegitimate early termination of the service agreement. In relation to the Italian civil proceeding, Force India F1 Team Ltd. paid one million euros into an escrow account as a security.

In October 2009 Force India F1 Team Ltd. started criminal proceedings by filing a complaint against unknown persons with the competent Italian authorities for the illegitimate disclosure of confidential information.

Force India believes that Aerolab Srl. may have, during the course of its contract with the team, disclosed Force India F1 Team Ltd.’s intellectual property to 1 Malaysia Racing Team Ltd. and Mike Gascoyne, with whom Aerolab Srl. was at that time working through a sister company. The intellectual property was used in the development of the Lotus T127.

Force India F1 Team Ltd. believes that the evidence retrieved during the investigations carried out by the Italian authorities that such a transfer took place.

Such evidence was therefore submitted to the UK Courts. The civil case with be heard week commencing 16 January 2012 and will now deal with the IP infringement and the services of Aerolab Srl. to Force India F1 Team Ltd.

Separately, in Italy, where Aerolab Srl. is registered, the authorities are actively pursuing cases against 1 Malaysia Racing Team Ltd., Mike Gascoyne and Aerolab Srl. for consistent infringements of intellectual property rights.