Alaska loses appeal in $160 million dispute with Virgin

Alaska Airlines has lost its appeal in an approximately $160 million trademark case with Virgin Group. It follows last year's ruling by a London court that said Virgin was entitled to royalties, despite the US airline no longer uses the Virgin brand. Alaska is liable to pay Virgin nearly $8 million in minimum royalties annually until 2039. Alaska had acquired Virgin America in 2016; the trademark licencing agreement between Virgin and Virgin America in 2014 required the annual payment in royalties even if Alaska stopped using Virgin's branding. Judge Stephen Phillips said in the appeal case that it was a ""straightforward issue of contractual interpretation"" and upheld last year's London high court ruling. In March 2023, London high court judge Christopher Hancock declared that Alaska ""must pay Virgin at least the minimum royalty each financial year, even where Alaska derives no gross sales from the use of the trademarks."" Hancock said: ""The minimum royalty would have to be a flat fee rather than a royalty. In my judgment, that is exactly what the minimum royalty is. It is a flat fee payable for the right to use the Virgin Brand, whether or not that right is taken up"". Alaska Airlines had argued that Virgin was protected ""against the commercially absurd situation"" where it had no intention of using the brand and received nothing for the rights.