Alaska Airlines loses $160M trademark case to Virgin.
Alaska Airlines faces a £130 million trademark setback after an appeal fails, affirming a court ruling to pay Virgin royalties until 2039 despite non-use.
In a significant setback, Alaska Airlines has lost an appeal in a £130 million trademark case with Virgin Group. The dispute revolves around a trademark licensing agreement between Virgin and Virgin America, which was acquired by Alaska’s parent company in 2016.
Key Points from the Case
- A London court last year ruled that Virgin was entitled to royalties from Alaska Airlines, even though the U.S. airline no longer uses the Virgin brand.
- The court ordered Alaska to pay a minimum royalty of £8 million per year until 2039, as per the terms of the 2014 trademark licence agreement between Virgin and Virgin America.
- Alaska unsuccessfully argued that an agreement requiring it to pay £8 million a year for trademarks it has no intention of using was “commercially nonsensical.”
- The Court of Appeal in London rejected Alaska’s appeal, stating that Virgin’s interpretation of the agreement was correct.
The Background
Alaska Airlines and Virgin America have a history of legal disputes. In 2016, Alaska Airlines acquired Virgin America, which had a pre-existing trademark licence agreement with Virgin. The agreement required Alaska to pay a minimum royalty of £8 million per year until 2039, regardless of whether or not Alaska used the Virgin branding.
