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Topic: Virgin sues train operator Brightline for USD250 million in brand value dispute

  1. #1
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    Default Virgin sues train operator Brightline for USD250 million in brand value dispute

    Here's an interesting story from today's TravelMole.

    The reason given by Brightline seems a bit spurious considering nearly every airline and transportation company has suffered due to the pandemic.

    Virgin sues train operator Brightline for USD250 million in brand value dispute

    Sir Richard Branson's Virgin Enterprises is asking a court to rule on whether Virgin's brand equity is still a valuable commodity.

    Virgin is suing US train operator Brightline for reneging on a licensing deal worth $251million (182million)

    A deal was struck for Brightline to rebrand its passenger operations as Virgin Trains USA in exchange for royalties over a 20-year period.

    Brightline operates services in Florida and is planning routes in California.

    Virgin accuses Brightline of using spurious reasons to get out of the agreement.

    Brightline claims Virgin is no longer 'a brand of international high repute' after its struggles during the pandemic.

    Virgin Atlantic has been forced to lay off workers and the new Virgin Voyages cruise brand has seen its launch delayed by a year.

    Brughtline says continuing to trade under Virgin Trains USA 'would be materially damaging to Brightline's reputation.'

    Virgin is suing Brightline in the High Court, seeking the $251m in royalties is says it is owed.

    The rail operator has been looking for 'an opportunistic pretext' to get out of the deal.

    This is 'on the basis of a cynical allegation that the Virgin brand had ceased to constitute a brand of international high repute,' the lawsuit says.

    Brightline had first hinted it might terminate the agreement in April 2020 after Virgin's travel based brands starting being impacted by the pandemic.


    And here's a link to the BBC story on the same subject.

    https://www.bbc.co.uk/news/business-56317444
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  2. #2
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    Yes, I thought this was on the cards ever since Brightline announced they were "cutting their ties" with Virgin last year. Virgin were conspicuously silent on the matter, but now we know why: there's bad blood - and lots of legal wrangling - between them.

    Watch this space, as they say....!

  3. #3
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    Lots of lawyers making themselves lots of money on both sides no doubt.
    7 Trips to Florida, Christmas in LA, Disneyland Paris twice and odd days here and there.
    All my trip reports are now HERE.

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