If oyu look at the Virgin Blue prospectus - there is nothing about SQ blocking the name. It is actually Virgin Group (which has no SQ ownership) that has the restrictions on the Virgin Blue brand licensing.

Somne key points from their prospectus

http://www.virginblue.com.au/cms/gro...t/u_000658.pdf Page 70

- Virgin Group own the "Virgin" and "Virgin Blue" names
- License agreement until 2015
- Name is licensed until 2015
- Can only be used for domestic and no other worldwide places (presumably to protect Virgin's chances of franchising the brand in other markets)

and the interesting bit

- 0.5% royalty on revenue patable to Virgin Group. Capped at 1.5 times the amount paid at end of 31 MArch 2004

So no mention of SQ blocking anything (wives tale)..... and it seems that Virgin Group have been losing out on commission due to the cap. So presumably any blocked roads over the "Virgin" name are about commission payable going forward as currently PAc Blue and V Aus would not be paying commission.