Ruling forbids RadioShack brand in Canada

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Friday, March 25, 2005

A U.S. District Court in Tarrant County, Texas, issued a summary judgment Thursday against Circuit City's InterTAN Inc., requiring all 950 RadioShack stores in Canada to stop using the RadioShack brand in store signs, packaging, products and advertising after June 30.

RadioShack's Canadian operations were spun off in 1986 to a new corporation, InterTAN Canada, which was purchased in 2004 by RadioShack's major U.S. competitor, Circuit City. Shortly thereafter, RadioShack sued InterTAN, alleging it had violated the terms of their licensing agreement and seeking the right to terminate the contract early.

In a statement released following the judge's ruling, RadioShack's general counsel, Mark Hill, claimed: "The most important thing to us was to protect our brand position in Canada."

Circuit City chairman and chief executive officer, W. Alan McCollough responded today in a press release seeking an appeal: "We respectfully believe the court has erred in the partial ruling entered yesterday and we will use every means of relief possible to exercise our rights under the agreements, including all appeal rights. The Company believes the positions taken by InterTAN are correct and believe InterTAN will ultimately prevail in the legal proceedings."