A Virgin firm has received a Excessive Court docket battle with an American prepare operator which pulled out of a deal after alleging the “Virgin model” had stopped being a “model of worldwide excessive reputation”.
Virgin Enterprises stated Brightline Holdings was in breach of a trademark licence settlement.
Brightline disputed Virgin Enterprises’ declare.
A choose on Thursday dominated in favour of Virgin Enterprises.
Choose Mark Pelling stated, in a written ruling, that Brightline had “did not show” points “it needed to show”.
The choose, who oversaw a Excessive Court docket listening to within the Rolls Constructing, in London, in July, indicated that selections about damages could be made at a later date.
He was advised that Virgin Enterprises wished round £200 million damages.
The deal meant that Brightline would rebrand its rail providers within the US as “Virgin Trains USA”, Choose Pelling heard.
He heard that Virgin Enterprises was a part of the Virgin Group, based by businessman Sir Richard Bransonand managed mental property regarding the “Virgin model”.
Virgin Enterprises had alleged that Brightline had breached a 2018 “trademark licence settlement”, stated the choose.
He stated Virgin Enterprises had agreed to “license the Virgin Model” to Brightline to be used “in reference to its rail providers enterprise” on the east coast of the USA.
Brightline argued that it was “entitled to terminate”.
The choose stated Brightline’s defence was {that a} clause entitled it to terminate if “the Virgin model” had ceased to be a “model of worldwide excessive reputation”.
Legal professionals representing Brightline, which, the choose stated, was registered in Delaware and operated a prepare service between Miami and Orlando, had outlined considerations about Virgin’s prepare and airline companies, on the listening to.
They stated by the tip of 2019, Brightline was changing into “involved in regards to the status of the Virgin model”.
“In April 2019, Virgin Trains was disqualified from bidding for a renewal of the West Coast mainline prepare franchise; it operated no trains within the UK after December 7 2019,” they stated.
“Not lengthy after the announcement that Virgin Trains had been disqualified, traders began to specific considerations about Brightline’s hyperlinks with Virgin.”
Legal professionals representing Virgin Enterprises had stated Brightline’s allegation – that the “Virgin model” had stopped being a “model of worldwide excessive reputation” – was “cynical and spurious”.
Choose Pelling stated: “I conclude that Brightline has did not show any of the… points it needed to show if it was to achieve its defence and for that cause the declare succeeds.”
Choose Pelling stated Brightline had “did not show that the model had ceased to be a model of worldwide excessive reputation” on related dates.
He added: “Though it was urged by Brightline that its standing with customers was broken by its continued affiliation with Virgin, there isn’t any proof that’s so.”
The choose stated there was “no proof” which demonstrated Brightline’s “model fairness” had been broken.