Richmond, Va., Circuit City Stores Inc. today said it would appeal a Texas district court ruling that RadioShack Corp. could end a licensing contract with its InterTan unit. The court ruled that Circuit City and its spin-off unit InterTan Inc. must stop using the RadioShack brand name in store signs, products, packaging and advertising in Canada after June 30. RadioShack sued InterTan in 2004 on grounds that the unit violated its contracts, and sought to terminate the licensing agreement. InterTan, a 1987 spin-off of RadioShack, operates 980 company-owned and dealer stores in Canada.
“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,” W. Alan McCollough, Circuit City chairman and CEO, said in a statement. “The company believes the positions taken by InterTan are correct and believe InterTan will ultimately prevail in the legal proceedings.”