CMSI, Inc. and its partners KG of Seattle, WA reached an impasse late in 2005 in their discussions concerning how to proceed on the Lambretta project.
CMSI and KG are currently working to resolve this impasse and if needed, will submit to binding arbitration to resolve it as outlined in their agreement.
However, CMSI had already determined independently of KG , that the trademark Lambretta had been substantially compromised in many countries and was therefore not available for use in worldwide branding. Without clear branding rights, worldwide marketing and sales of the new scooter was in doubt and would make the sales needed for amortization of tooling costs impossible to clarify and achieve. This ambiguity and conflict was pointed out to KG and SIL many times but no resolution was forthcoming.

In addition, CMSI’s trademark counsel has advised it that several other users of the trade name Lambretta in their legal business names and/or their products related to motorcycles and scooters, have been in use for decades or longer and that due to the fact that SIL has not sold new scooters into the US market for the last five years, has probably resulted in abandonment of that trade name in the U.S. Because there are substantial royalties associated with licensing the trade name from SIL, these unresolved issues made the economic value of the name questionable, even in the USA market alone.

CMSI has substantial investments and commitments in this new scooter project and cannot sit by and do nothing. It is for the above reasons that CMSI has decided to move forward with the SCOMADI project. The new website will be completed soon and details and progress will be posted there periodically.

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Public Release on CMSI website
- A new Italian brand that is based on the style and influence of the historic scooter line Lambretta by Innocenti, that was born in Italy, along with Vespa, in 1946. This classic style has become an icon in the scootering industry worldwide. Due to difficulties in securing clear worldwide rights from SIL for the Lambretta trademark, CMSI and its partners have decided that a new brand will enable the worldwide trademark rights that are essential to breakeven sales and efficient production required to amortize tooling costs for a new model. This brand will be introduced in the U.K. in 2006 and in the North American market by late 2006 or 2007. The basis for the SCOMADI line will continue to be classic Italian style and excellent performance. The initial pre-production prototypes have exceeded 90 mph in trials in the U.K. and U.S. with a Piaggio 250 cc engine. At this time final design work is being completed in the U.K. and initial production plans are leaning towards Italy as the preferred site.
  
New Web site: http://www.scomadiusa.com

John F.

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