Court orders end to RadioShack branding in Canada
Last Updated: Monday, March 28, 2005 | 10:50 AM ET
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The company that oversees the stores, Circuit City Stores Inc., said Friday that it intends to appeal the ruling.
"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," said Circuit City CEO Alan McCollough in a statement.
RadioShack Corp. had asked the courts to allow it to end a licensing contract it had with InterTan Inc., a subsidiary of Circuit City.
That licensing deal had allowed InterTan to use the RadioShack name at its company-owned and dealer stores across Canada until 2010.
Alleging that InterTan had breached the terms of its agreement with RadioShack, the company launched a lawsuit last year seeking the court's okay to end the contract early.
InterTan was acquired by U.S.-based Circuit City in March 2004. The lawsuit was filed a week after Circuit City bought InterTan.
Circuit City and RadioShack are major competitors in the U.S.
"The most important thing to us was to protect our brand position in Canada," RadioShack general counsel Mark Hill said in a statement after the judge's ruling.
"We are committed to acting in the best interest of our shareholders, and we are extremely pleased with the court's decision," he said.
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