easyGroup loses high court legal action against Easypizza Limited (Case #HC05C00707).

 June 19, 2006 -- easyGroup IP Licensing Limited, the company that holds intellectual property belonging to companies controlled by the controversial Stelios Haji-Ioannou, the founder of easyJet, has abandoned its High Court action against Easypizza Limited and its directors.

Easypizza Limited currently operates in Barnet, Camden, Enfield, Haringey, Islington, and began trading in 1997 where it has developed a steady business in supplying its freshly baked pizza and Italian food and drink products to customers under the Easypizza brand. In 2004, Stelios’s company started its own similarly named easyPizza business serving re-heated frozen pizza on a delivery-only basis to certain parts of the Milton Keynes area and has since expanded in partnership with Famous Moes Pizza into Brighton, Portsmouth, Southampton and Worthing.

Easypizza Limited were represented by Memery Crystal Solicitors and easyGroup were represented by Claire Algar of Collyer Bristow Solicitors. The case became increasingly acrimonious and bitter and a High Court trial of the matter was originally due to commence in February 2006, but easyGroup served a Notice of Discontinuance shortly beforehand. Easypizza Limited then withdrew its own Counterclaim bringing matters to an end although not before the expenditure of several hundred thousand pounds in legal costs on both sides.

David Hansel and Jane Marsden of Memery Crystal acted for Easypizza Limited. David Hansel says, “As with its earlier action for passing off and trade mark infringement against Easyart (who Memery Crystal also successfully defended), easyGroup cannot claim a monopoly over trading names beginning with the word “easy”. This applies even where they have obtained a registered trade mark, but are seeking to stop an earlier trader from using the ‘easy’ name. easyGroup have now been ordered to pay Easypizza Limited’s costs of the action and will not be able to bring another similar action against Easypizza Limited and easypizza.co.uk without the permission of the Court, which we are confident that we would be able to oppose successfully.”

Karl Kahn of EasyPizza says, “Stelios is a rich bully who tried to intimidate us into closing our business. He hired expensive lawyers, private investigators and attempted to force EasyPizza out of business. We didn’t have his resources but we knew we were in the right and thank goodness justice prevailed. We now have a court order protecting us from further interference by Stelios.”

June 27, 2006 -- easyGroup director of corporate affairs James Rothnie issued a statement in response to the intense media interest in the EasyPizza High Court victory over easyGroup owner and former easyJet owner newly knighted Sir Stelios Haji-Ioannou. We wish to rebutt the entire statement.

easygroup states "during the course of this case we discovered, contrary to initial information we had, that Mr. Khan's outfit had been in operation for longer than we originally thought. as a result the easyGroup decided to settle its case with Mr. Khan out of court. Mr. Khan has also discontinued his case against the easyGroup. the easyGroup is not paying all of Mr. Khan's costs."

EasyPizza responds easyGroup were certainly aware of our existense in 2003 when they attempted to buy our domain easypizza.co.uk and when they registered a company Easypizza (UK) Limited. We had previously registered our own company Easypizza Ltd. We have letters from easyGroup to confirm this. High Court papers were not served until 2005. To date easyGroup has not refunded a penny of our costs despite the court order stating categorically that easyGroup are responsible for all of our costs regarding their High Court claim against EasyPizza.

easyGroup states "the settlement agrees that both parties will use their own domain names and that mr khan will avoid using the easyGroup get up - specifically the colour orange, the easyGroup font and presentation. the easyGroup has reserved their right to challenge any attempt by Mr. Khan to register any other 'easypizza' domain names other than his current one."

EasyPizza responds we have never used the colour orange nor did easyGroup argue such in court. Therefore it is misleading of them to make this implication. The second part is a veiled threat of further predatory action.

easyGroup states "of particular significance to the easyGroup is that Mr. Khan's outfit does not take orders via the internet which is the main sales channel for the easyPizza owned by the easyGroup. Mr. Khan's outfit is a telephone order and takeaway service only and even if his Web site does link to the Web site of domino's which is certainly a competitor of the easyGroup."

EasyPizza responds we are free to accept orders online, however, at present we do not simply because we have not set up our Web site to do so. However, we intend to do so in the near future.

Stelios said, "We do not bully people, we only protect our lawful rights and the fact that we decided that Mr. Khan has certain legitimate rights to the name in a very limited area of london is proof that we do act reasonably and responsibly and always in good faith. We wish him well in trading using this name inside the very narrow geographical territory."

EasyPizza Ltd responds we are NOT restricted to any geographical area. It is simply because we are a small company that we presently only supply a limited area. However, we are able to expand freely and indeed warmly invite partners to assist us. We also do not agree that 'interference' with High Court trial witnesses, harrasement of EasyPizza staff members and profuring 'misleading' and 'incorrect' evidence can be considered examples of 'good faith'.

Karl Kahn says: "during a meeting i had with Stelios at his office on the 14th February 2006, Stelios said to me that 'most people when they are served with papers from easyGroup simply rebrand and walk away' I regard this as a pattern of corporate bullying."


High Court Case #HC05C00707
Chancery Division
Master Bragge

For further information regarding EasyPizza, please contact:
Karl Kahn
EasyPizza Ltd | 48 Topsfield Parade | London N8 8PT
Tel 08712 192 192 | Fax 020 8444 7272

For further information regarding Memery Crystal please contact
David Hansel
Memery Crystal LLP solicitors | 44 Southampton Buildings | London WC2A 1AP
Tel 020 7242 5905 | Fax 020 7242 2058

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