Scooters India Facing EUR 10 Million Claim by Lambretta Consortium for Trademark Infringement, and Injury to Business Reputation in Connection With the Illegitimate Licensing of Lambretta Rights

By Bluehorn, PRNE
Tuesday, November 9, 2010

MILAN, Italy, November 10, 2010 - 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: www.lambretta.com

Contact: mr drs Walter Scheffrahn MBA MBI, M: walter.scheffrahn at lambretta.com, T: +31-655852000

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