In a surprising twist to a long-standing partnership, Delta Air Lines and Alaska Airlines are now embroiled in a legal battle over trademark rights, with Virgin Atlantic caught in the middle. Although Virgin Atlantic no longer collaborates with Alaska, it remains a partner with Delta, leading to a complex dispute. Alaska has issued a subpoena to Delta, seeking information related to its ties with the Virgin Group. The crux of the issue is Alaska’s claim that Virgin is unlawfully promoting Delta, infringing on Alaska’s rights to the now-defunct Virgin America brand.
Back in 2016, Alaska acquired the Virgin America brand when it took over the Virgin Group’s North American operations. Alaska contends that its ownership of the Virgin brand in North America should prevent Virgin from teaming up with Delta for advertising and business ventures at key airports, such as Seattle-Tacoma International (SEA). Despite once being allies, Delta, Virgin Atlantic, and Alaska are now fierce competitors. Delta holds a 49% stake in Virgin Atlantic, while the Virgin Group owns the remaining 51%. Alaska’s legal filing accuses the airlines of engaging in a trans-Atlantic scheme that undermines competition and disregards regulatory guidelines.
The merger between Virgin America and Alaska was finalized in 2018, transferring all rights and responsibilities to Alaska. Although Alaska stopped using the Virgin brand shortly after, a UK court ruled that it must continue paying royalties to the Virgin Group. This led to a lawsuit from the Virgin Group, which has now drawn Delta into the fray. Alaska argues it should be able to stop using the brand and cease royalty payments at will, but Virgin insists that payments are necessary to maintain trademark rights. It seems Alaska may not have had the authority to unilaterally end the licensing agreement, as per the original merger terms.
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Originally reported by Simple Flying Read More
