London's High Court has ruled that Alaska Airlines must pay over $30 million in missed minimum royalties to Virgin Group under a trademark licensing agreement. The dispute centres on Alaska’s use of the Virgin America brand, which it inherited after acquiring Virgin America.
Alaska Airlines argued it shouldn't have to pay the royalties due to an alleged breach of contract by Virgin, involving a loyalty program with Delta Air Lines that allowed Virgin Atlantic customers to redeem points for domestic Delta flights—some overlapping with Alaska’s routes.
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However, the High Court rejected Alaska’s argument, stating that the minimum royalties were a flat fee for the right to use the Virgin branding, regardless of actual usage or exclusivity. The judge emphasized that the licensing agreement clearly required payment for the full bundle of rights.
This ruling aligns with previous decisions in related cases, including a 2023 High Court judgment and a 2024 Court of Appeal decision, which upheld that Alaska owed $160 million in royalties despite not using the Virgin brand since 2019.
Alaska Airlines still intends to pursue its infringement claim against Virgin, hoping to recover some or all of the royalties as damages in a future trial.
