Alaska Airlines Loses Appeal in $160 Million Virgin Group Trademark Royalty Case

The High Court of Justice ruled today against Alaska Airlines in its appeal regarding trademark royalties owed to the Virgin Group, upholding a previous decision requiring the airline to pay $160 million.

The court reaffirmed that Alaska Airlines must continue making royalty payments for the rights to use the Virgin name and branding, despite ceasing to actively use those rights after acquiring Virgin America between 2016 and 2018. The ruling, delivered on October 3, 2025, states that Virgin is entitled to minimum royalties through September 23, 2022. This decision underscores the enduring value of brand recognition even when a brand is not actively marketed.

Alaska Airlines had argued it should be allowed to retain control of the Virgin trademarks for 25 years without payment, given its lack of current usage. However, the court rejected this claim, stating the brand’s value lies in preventing competitors from utilizing the Virgin name within the US market. According to court documents, the airline also retains the right to use the trademarks should it choose to do so. The dispute stems from the 2018 merger of Virgin America and Alaska Airlines, a period of significant consolidation in the US airline industry.

The case also involved allegations from Alaska Airlines that Delta Air Lines, through its partnership with Virgin Atlantic, was indirectly promoting Virgin-branded services in the US, infringing on Alaska’s exclusive rights. Delta responded to the Atlanta Journal-Constitution, calling Alaska’s legal actions “meritless,” and stating the dispute is solely between Alaska and Virgin. You can learn more about the history of Virgin Group on their official website.

Alaska Airlines is expected to review the court’s decision and determine its next steps, while Virgin Group officials stated they are pleased with the ruling and look forward to receiving the owed royalties.