FORT WORTH, Texas - Circuit City says it will appeal a court ruling requiring it to drop the RadioShack name from stores it acquired last year in Canada.
State District Judge Bonnie Sudderth ruled Thursday that RadioShack was within its rights to terminate licensing, advertising and merchandising agreements with its former Canadian subsidiary, InterTan, which is now owned by Circuit City.
RadioShack General Counsel Mark Hill said the ruling means that the stores must stop using the RadioShack name by July 1. InterTan has 500 RadioShack stores and 340 RadioShack dealerships in Canada.
Circuit City Chief Executive Alan McCollough said in a statement, "We respectfully believe the court has erred in the partial ruling entered (Thursday) and we will use every means of relief possible to exercise our rights under the agreements, including all appeal rights."
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Fort Worth-based RadioShack filed the lawsuit in Tarrant County last April, after the sale of InterTan to Circuit City. RadioShack, concerned that its brand image in Canada would be controlled by a major U.S. competitor, asked for an injunction requiring InterTan to end its affiliation with RadioShack.
A spokesman for Circuit City, which is based in Richmond, Va., declined to comment on why the chain wants to keep the RadioShack brand name in Canada.
- Gazette news services