Stelios seeks clarification of certain terms of the brand licence between easyGroup and easyJet
posted: Aug 15, 2008

Stelios, the founder of easyJet, is the 100% owner of a company called easyGroup IP Licensing Ltd which is owner of the "easy" brand has asked the High Court in London to clarify the terms of an agreement between easyJet PLC and easyGroup IP Licensing Ltd. The 56 page brand licence agreement was entered into between easyJet PLC and Stelios' company just before easyJet's IPO in November, 2000 and was fully disclosed in the IPO prospectus. The brand licence determines the way in which easyJet PLC can use its name and is focused on ensuring that the company sticks to its core activity of airline passenger transport, preventing it from becoming a conglomerate. Under the brand licence 75% of easyJet’s income must be derived from transporting passengers in aircraft, rather than from ancillary goods or services.

Stelios commented: “It should not be surprising to anyone that certain language that was drafted 8 years ago can be interpreted in more than one way in view of the fast changing business model of low cost airlines and their recent pursuit of ancillary sales. I want to be fair to the other shareholder's of easyJet PLC but also to the many investors in all the other "easy" branded businesses (see www.easy.com). Given my commitment to the highest standards of corporate governance and my obvious conflict of interest as a director and shareholder of both companies, I feel it is best to ask a judge to interpret certain clauses in the brand license and in particular the so called 75:25 rule. I am sure that clarity is in the best interest of everyone involved in the "easy" brand. Given my obvious conflict I have suggested to the board of directors of both companies that we should all agree not to trade in the easyJet stock until this is resolved.”

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