Mike Ashley's Retail Giant Confronts Trademark Damages in Court Appeal
Billionaire businessman Mike Ashley's company, Frasers Group, is back in court today as it seeks to challenge damages awarded in a long-running trademark infringement claim. The appeal centers on a dispute with the Beverly Hills Polo Club brand, owned by Lifestyle Equities, which alleged that Sports Direct infringed its trademark through products sold under the 'Santa Monica Polo Club' brand.
Legal Battle Over Unregistered Licenses
Sports Direct, rebranded as Frasers Group in 2019, lost the initial infringement case in 2018 and is now appealing against the damages costs it was ordered to pay. The company argues that the damages should be reduced because Beverly Hills Polo Club's licenses were not officially registered in the UK. In its appeal, Frasers Group stated that without proper public registration, an alleged infringer can be "suddenly confronted with a Trojan Horse full of licensees claiming damages" that they had no means of knowing about.
The retail giant further claims that if a trademark owner can recover money for unregistered partners, it creates a "charter for unjust enrichment," potentially allowing the owner to collect more than just their own financial losses. The case was heard at the Court of Appeal on Tuesday, with a judgment expected soon.
Background on Mike Ashley's Empire
Mike Ashley founded the company in 1982 and served as chief executive until stepping down in 2022, handing the role to his son-in-law Michael Murray. He still owns a 70 percent stake in the business. Listed on the FTSE 250, Frasers Group holds stakes in numerous high street names, including:
- Flannels
- House of Fraser
- GAME
- Jack Wills
In recent months, Ashley has expanded his investments, securing a slice of FTSE 250 property company Grainger in January and a stake in sports giant Puma in March. He also maintains large stakes in Boohoo, Asos, and Hugo Boss.
Ashley is widely known as the former owner of Newcastle United, which he sold in 2021 to a consortium led by the Public Investment Fund of Saudi Arabia for approximately £305 million, ending his 14-year tenure at the club.
Legal Representation Changes
This appeal comes after City AM revealed that law firm RPC lost one of its highest-billing lawyers, Jeremy Drew, who represents Ashley. Drew has left RPC to join Taylor Wessing, adding another layer of complexity to the ongoing legal proceedings.
