Virgin Group wins London court battle over brand reputation

British billionaire Richard Branson's Virgin Group on Thursday won a lawsuit against US train operator Brightline over a cancelled branding deal, with a judge at London's High Court awarding $115m in damages. Virgin Group sued Brightline after the latter cancelled a deal to use the Virgin brand in 2020, just over 18 months after it was signed. Brightline said it terminated the deal because the Virgin brand had been hit by negative press coverage of Branson's 2020 claim that UK-based airline Virgin Atlantic would need a bailout from the British government to survive the pandemic. But Virgin argued its brand was not materially damaged by the group's handling of COVID-19, meaning Brightline could not cancel the deal without paying an exit fee of up to $200m. The company also sought unpaid royalties and Brightline's lawyers said in court filings for the trial in July that Virgin's lawsuit was valued at $250m. Judge Mark Pelling ruled in Virgin's favour on Thursday, saying in a written ruling that "Brightline has failed to prove that the (Virgin) brand had ceased to be a brand of international high repute" when it cancelled the deal. A Virgin Group spokesperson said: "The Virgin brand has been a symbol of global innovation, exceptional customer experience and entrepreneurship for more than 50 years. Today's court judgment demonstrates the strength of our business and brand following Brightline's attempts to breach a long-term licensing agreement."<br/>