Court of Appeal Clarifies Unregistered Licence Damages

In May 2026 the Court of Appeal handed down judgment in Lifestyle Equities CV v Frasers Group Trading Ltd. The case concerned UK trade marks for the Beverly Hills Polo Club brand. Lifestyle Equities, the proprietor, and its exclusive licensee sought to recover losses suffered by sub-licensees in an inquiry as to damages following earlier infringement findings. Most sub-licences had not been registered at the UKIPO.

The Court held that section 25(3)(b) of the Trade Marks Act 1994 prevents a licensee from benefiting from the protections in section 30 unless the licence is registered. Section 30(6), which allows a proprietor to recover licensee losses, forms part of those protections and cannot be separated. Registration may occur after infringement but must fall within the limitation period applicable to the licensee’s claim. As the relevant registrations were out of time, recovery of the sub-licensees’ losses was barred.

The decision underscores the distinct nature of licensee loss claims in trade mark infringement proceedings.

Small-business owners should register all trade mark licences promptly to preserve rights to recover damages.

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**Sources**

- <https://www.shoosmiths.com/perspectives/stories/articles/avoiding-the-black-hole-court-of-appeal-considers-registration-of-trade-mark-licences> - <https://www.brabners.com/insights/intellectual-property/court-of-appeal-clarifies-when-licensee-losses-can-be-recovered-4-practical-steps-for-ip-owners-licensees>