Brightline Claims Virgin Name Would Damage Value

Published by Law360, London, April 16, 2021

For the first time we hear why Brightline ended its 20-year licensing deal with Virgin Trains, USA.  According the Law360, Brightline told the court it was entitled to drop the Virgin name from its trains after the brand and Sir Richard Branson, the founder, suffered a severe backlash following the COVID-19 pandemic.

Virgin Atlantic Airline

Law360 reports that Brightline Holdings LLC said in a High Court filing that it terminated the 20-year licensing deal for fear that its reputation and the value of the business would be damaged by the Virgin brand name after Branson’s public plea to the U.K. government to bail out his airline, Virgin Atlantic.

Brightline, the higher-speed passenger rail is being sued for more than $250 million in damages by Virgin Enterprises Ltd.

Brightline’s Miami to West Palm Beach rail service stopped in March 2020, due to the COVID-19 pandemic.  No word yet on when service will resume.  Brightline says construction on the West Palm to Orlando route will be completed in late 2022.

Read the story online through the Law360 website: https://www.law360.com