06/05/2012

Sigh ...

Remember this article that we posted in March regarding the on-going legal situation between Caterham and Force India? Well that's only part of this on-going story which dates back to early 2010.

The upshot of that hearing was that Force India have to pay their remaining unpaid fees of around ₹57M (£700,000) to Aerolab. But ₹1.6M (£21,000) has been given to Force India to compensate for use of the teams intellectual property rights which was deemed to have been done as a short cut rather than to gain a sneaky advantage.

Additionally the high court judge has now said that Force India have to pay around ₹56M (£650,000) to 1Malaysia Racing Team (the company name behind Catherham F1, formerly Lotus Racing) within 12 days. This figure is "legal costs".

It's not over yet though!

Sahara Force India have appealed the decision over the amount they receive to compensate for use of the teams intellectual property rights. It was set at ₹1.6M (£21,000); but is now subject to an appeal. A decision is expected in the coming weeks.

We know all this can be confusing, it's made me scratch my head a few times while typing all this up, so here is a profit and loss breakdown for this dispute.

1Malaysia Racing Team (Caterham F1):
+ ₹56M (£650,000): legal fees from Force India.
= ₹56M (£650,000): TOTAL

Aerolab:
+ ₹57M (£700,000): unpaid fees from Force India.
- ₹1.6M (£21,000): compensation to Force India.
= ₹55.4M (£679,000): TOTAL

Sahara Force India:
- ₹56M (£650,000): legal fees to 1Malaysia Racing Team.
- ₹57M (£700,000): unpaid fees to Aerolab.
+ ₹1.6M (£21,000): compensation from Aerolab.
=
₹111.4M (£1.3M): TOTAL

Clearly Sahara Force India have been the biggest losers in all this; despite the team making the appeal in the first place; and despite them having their own intellectual property rights used! Some very strange decisions have been made by the courts but let's just look to the future and see how this appeal goes.

(Note: figures correct at the time of conversion).

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