Monday, Aug. 01, 1988

Business Notes LITIGATION

General Motors' popular Chevrolet Beretta sports coupe is as hot as a pistol. In fact, it even has the same name as a pistol. GM denies any connection to the famed brand of Italian guns favored by both the fictitious James Bond and the very real U.S. Army. But last week Italy's Fabbrica d'Armi P. Beretta of Brescia fired off a $250 million suit against GM in Manhattan, charging that the automaker was guilty of trademark infraction and unfair competition.

Beretta traces its name to the 16th century, when the company dealt in crossbows. After the four-wheel Beretta was announced in 1986, the Italian firm negotiated with GM for two years in a fruitless effort to get the car's name changed. GM, which plans to contest the suit, insists the name is derived from various former products, including a version of the Chevy Camaro called the Berlinetta that was sold from 1979 to 1986.