Mike Ashley's retail empire has won a significant legal victory, overturning a potentially massive damages bill in a trademark infringement case. The Court of Appeal ruled in favor of Sports Direct, now known as Frasers Group, in its dispute with Lifestyle Equities, owner of the Beverly Hills Polo Club brand.
Background of the dispute
The long-running legal battle began when Lifestyle Equities accused Sports Direct of trademark infringement through goods sold under the 'Santa Monica Polo Club' brand. Sports Direct lost the infringement case in 2018 but appealed against the damages awarded.
Lifestyle Equities had sought damages not only for its own losses but also for losses suffered by other companies that pay to use its brand name. However, the Court of Appeal dismissed these claims, stating it was 'too late' for Lifestyle Equities to register the licenses after the lawsuit began in 2018.
Court's reasoning
The court noted that the claims 'appear to be well out of time' and that awarding the excess damages would create an 'unprincipled windfall' for the third-party companies. Sports Direct had argued that without proper public registration, an accused infringer could be 'suddenly confronted with a Trojan Horse full of licensees claiming damages' they had no awareness of, leading to 'a charter of unjust enrichment'.
This ruling marks a significant win for Frasers Group, sidestepping what could have been a much heftier financial penalty.
Ashley's admission in rival's downfall
In a separate development, Mike Ashley recently admitted to orchestrating the downfall of his rival, former JD Sports boss Peter Cowgill. Ashley confessed to organizing and leaking footage of Cowgill sharing commercially sensitive information with Footasylum's CEO in a car park. The leak led to fines of nearly £5 million for both companies. Ashley stated he was 'not hiding from the fact' that he was behind Cowgill's demise.
