11 October, 2010
easyjet brand licence
easyJet, the UK’s largest airline, today announces it has resolved its litigation with easyGroup IP over the terms of the ‘easyJet’ brand licence.
A revised brand licence agreement ends the long-standing uncertainty arising from the on-going dispute and confirms easyJet’s right to generate revenues from ancillary activities.
The amended and re-stated licence agreement continues easyJet’s worldwide rights to the use of its brand on a basis which protects easyJet’s current commercial activities and provides clarity and certainty over the terms of the licence. Operational flexibility is considerably improved and easyJet will have the freedom to enter new co-branding agreements with other travel service providers as well as white label partners such as car hire, hotels and travel insurance companies. In addition, easyJet will have the right to enter co-branding promotions with other leading brands. Upon obtaining shareholder approval for the revised brand licence, Sir Stelios has agreed to give up the right to appoint himself as easyJet Chairman and end easyGroup’s rights of representation on the Board of easyJet.
The rights will continue for a fifty year term, with a minimum commitment of ten years in return for an annual royalty payment of 0.25% of easyJet’s revenues. The payment is fixed at £3.9 million and £4.95 million for the first two years of the agreement.
For more information see http://production.investis.com/rns_ip3_easyjet/rns/rns-item?id=3740208
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