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C’City Sues RadioShack

5/18/2005 03:24:00 PM Eastern

Richmond, Va. — Circuit City subsidiary InterTAN Canada Ltd. has filed a $10 million (Canadian dollar) suit against RadioShack in the Ontario Superior Court of Justice, charging the CE chain with harassment.

The charges stem from an ongoing court battle over InterTAN’s right to the trade name RadioShack under a long-term licensing deal covering the Canadian market. RadioShack successfully argued in a circuit court in its home state of Texas that the deal was nullified after Circuit City acquired the Canadian retailer — a decision that InterTAN says it will appeal — and now plans to open 20 to 30 of its own RadioShack stores north of the border this year.

“InterTAN is committed to protecting our dealers, our employees and our good name in Canada,” said president/CEO Brian E. Levy. “Nearly all of the dealers, approximately 300, have signed new multi-year contracts with InterTAN, and we want the harassment by RadioShack to stop.”

In the suit, InterTAN accuses RadioShack of:

·Tortious interference by engaging in conduct aimed at directly interfering with and injuring the ongoing successful business operations of InterTAN and its affiliate dealers;

·Intentionally misrepresenting the litigation in the U.S. by claiming to have won the litigation, when in fact the interim ruling of the court in Texas remains subject to change or appeal;

Unfair competition by misrepresenting costs of products offered to dealers under a contractual relationship with InterTAN in an intentional effort to induce those dealers to terminate their contractual relationship with the company.

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