Virgin Wins $160 Million in Trademark Dispute With Alaska Airlines
LONDON—Virgin Group won the a href=”https://www.theepochtimes.com/t-trademark”>trademark Case against Alaska Airlines Inc. purchased the company for approximately $160million on Thursday. A London judge ruled that the company is entitled to royalties despite the fact that the Virgin brand has been discontinued by the U.S. airline.
Virgin units Virgin Aviation TM Ltd., and Virgin Enterprises Ltd. argued that Alaska is liable for a payment of approximately $8 million “minimum royalty” Payment every year up to 2039
It stated that the 2014 trademark license agreement between Virgin America Inc. (Victoria) and Virgin America Inc., which Alaska acquired in 2016, required an annual payment. Alaska could not stop using its branding.
On Thursday, Judge Christopher Hancock wrote that the minimum royalty was “a flat fee payable for the right to use the Virgin brand, whether or not that right is taken up.”
Virgin America spokesperson said that Alaska’s acquisition included Virgin America. “a branding agreement lasting until 2039 with clear obligations,” adding: “We are pleased the court agreed with our arguments.”
Alaska’s spokesperson stated that the case was being handled by them. “without merit and we intend to appeal the decision.”
Virgin America received a trademark license from Virgin America to use the Virgin America brand to operate a domestic airline in the United States before Alaska Air Group Inc.’s $2.6 billion acquisition.
Alaska merged its operations in 2018 with Virgin America and stopped using Virgin America’s brand the year after.
Virgin informed London’s High Court that Alaska, the legal successor of Virgin America Inc. was required to pay the annual payment in October.
Alaska’s lawyers claimed that an agreement that required it to pay $8,000,000 per year for trademarks it does not intend to use was unfair. “commercially nonsensical.”
Hancock however, declared that the agreement contained these words. “Virgin America should pay a continuing minimum fee for the right to re-use the Virgin brand, whether or not they chose to do so.”
Judge added that the terms of agreement were acceptable. “must be approached from the perspective of Virgin and Virgin America … and not from the perspective of Alaska.”
Sam Tobin
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