A British court has settled a long-running trademark dispute between Alaska Airlines and Virgin Group, the owner of Virgin Atlantic.
In a ruling issued Oct. 3, a court in London said Alaska must pay Virgin Group for the right to use the Virgin name and branding, even though Alaska has not exercised that right in the years since its acquisition of Virgin America between 2016 and 2018.
“The effect of my conclusions is that Virgin is entitled to a monetary judgment in the amount of the [minimum royalty] in the period to 23 September 2022,” the judge wrote. “It follows that Virgin is entitled to judgment with interest, and that Alaska is refused permission to effect the disputed amendments.”
The “minimum royalty” amounts to just under $8 million per year.
The source of the dispute between the two airlines is an agreement that allowed Alaska to use Virgin’s brand name. After Alaska acquired Virgin America and fully integrated its operations in 2018, the carrier stopped using Virgin branding and argued that it should no longer be responsible for the minimum royalty.
Virgin Group argued that it was owed the minimum royalty each year between 2016 and 2039. Alaska countered that this arrangement was never explicitly spelled out by Virgin Group or Virgin America.
Alaska also argued that Virgin Group violated parts of the licensing agreement by launching a loyalty program with Delta.
A London judge ruled in favor of Virgin Group in 2023, awarding it the full $160 million. The judge wrote that the minimum royalty is “a flat fee payable for the right to use the Virgin brand, whether or not that right is taken up.”
