Circuit City Disputes RadioShack's Canada Plans
May 9, 2005
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Circuit City Stores Inc., the No. 2 U.S. electronics retailer, said it will fight to keep its rights to use RadioShack Corp's brand name in Canada after RadioShack unveiled plans to open its own electronics stores there in 2005.
Circuit City said a U.S. court ruling in March that affirmed RadioShack's right to reclaim its name and gave Circuit City until June 30 to rebrand its Canadian stores did not mean the retailer had relinquished its rights to the exclusive use of the RadioShack name in Canada.
Circuit City, based in Richmond, VA, U.S., said it had a right to use the RadioShack name until 2009 under a licensing agreement between RadioShack and InterTAN, a Canadian electronics retailer. Circuit City bought InterTAN in 2004. InterTAN, based in Barrie, Ontario, Canada, operates nearly 1,000 company owned and dealer stores in Canada.
Brian Levy, president and CEO of Circuit City's InterTAN division, said the March ruling by a Texas district court was only a partial decision on the legal issues tied to the branding dispute between InterTAN and RadioShack.
"Once a final ruling is issued by the court," he said in a statement, "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 said it was "disappointed by RadioShack's hostility" after RadioShack released a statement saying it had won a lawsuit against Circuit City and was forming a subsidiary to oversee its Canadian expansion. (Reuters)
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