By Alric Lindsay
According to a Grand Court document dated November 20, 2025, WestTel Limited (trading as “Logic”), is demanding reimbursement of royalty fees it paid to the Utility Regulation and Competition Office (“OfReg”) and/or the Attorney-General of the Cayman Islands. Logic argues that neither Ofreg nor the Attorney General had the statutory authority to demand, collect or receive such fees under relevant legislation.
Based on the claim, Logic is a television and internet service provider in the Cayman Islands, and OfReg is responsible for, inter alia, issuing licences in various sectors, including with respect to Information and Communications Technology (“ICT”) in the Cayman Islands. Reportedly, Logic holds licences in the ICT sector for ICT Networks and ICT Services (the “Licences”).
The claim highlights that it is a term of the Licences that the Plaintiff pays a licence fee comprising:
a. Six percent of the quarterly revenue of Logic (the “Royalty Fees”); and
b. A fee calculated based upon the costs of the Second Defendant (the “Regulatory Fees”).
The claim states that Logic paid significant Royalty Fees and Regulatory Fees to OfReg, which OfReg remitted to the Cayman Islands Government.
However, the claim notes that the Grand Court, in the recent decision The King v The Utility Regulation and Competition Office, held that there is no legislative authority for OfReg to demand, collect or receive the Regulatory Fees or the Royalty Fees.
The claim adds that, with respect to the Regulatory Fees, the ICT (Validation) Act 2024 (the “Act”) by its terms validates Regulatory Fees up until the commencement of the Act. However, there is no legislation validating Regulatory Fees subsequent to the commencement of the Act and no legislation validating the Royalty Fees.
Based on the above, the claim argues that neither OfReg nor the Attorney General had any statutory authority to demand, collect, or receive such fees and seeks reimbursement.
It is unclear whether other holders of Licences in the Cayman Islands will now file similar claims.
