Circuit City and RadioShack are in the middle of a dispute in which company gets to use the name RadioShack in Canada.
The name RadioShack was licensed to InterTan Inc. until 2009. Last year, InterTan was purchased by Circuit City.
MarketWatch tells about the dispute:
Last week, Circuit City said it will rebrand approximately 900 Canadian stores, calling them The Source by Circuit City, on or before June 30. But Circuit City contends that it can hold on to the RadioShack name — which has been in Canada for 35 years — until the license expires in 2009. That essentially would keep RadioShack from expanding north of the U.S. border.
RadioShack, however, said a court ruling last month voided the license and also prohibited Circuit City from using the RadioShack name in Canada, or sublicensing the name to its independent dealers after next month.
Yesterday RadioShack issued a press release saying that it is forming a Canadian subsidiary to oversee the expansion of its chain of specialty consumer electronics stores in Canada as part of the company’s planned North American expansion strategy.
“I have one thing to say to our Canadian customers: RadioShack will continue to be there to service your consumer electronics needs,” said David Edmondson, president and CEO-elect of RadioShack Corporation. “For more than 35 years, RadioShack has been a household name to Canadians, and that’s why we fought so hard to protect our brand. The loyalty and trust our customers place in us has made our name one of the most powerful brands in North America.”
Circuit City countered RadioShack’s press release with its own saying that Circuit City has not relinquished its rights to the exclusive use of the RadioShack brand in Canada until 2009.
“The Texas district court has only issued a partial ruling on the legal issues between InterTAN and RadioShack,” said Brian E. Levy, president and CEO of InterTAN and THE SOURCE BY CIRCUIT CITY. “Once a final ruling is issued by the court, Circuit City and its InterTAN subsidiary fully intend to appeal to protect our rights under the License Agreement and for exclusive use of the RadioShack brand in Canada until 2009.”
Circuit City shares have gone up 14 cents as RadioShack shares have fallen 8 cents.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
