M+E Daily

NCR Sues Blockbuster To Keep Its Kiosk Name

NCR Corp. is asking a Delaware federal court to declare that it has a contractual right to continue using the “Blockbuster Express” name for its movie rental kiosks, which number more than 9,000 nationwide.

The Blockbuster Express name, design and related trademarks are held by the BB 2009 Trust — an entity that, according to NCR, was not part of Blockbuster’s 2010 bankruptcy proceeding. Following the sale of Blockbuster’s assets to Dish Network Corp. in April, Blockbuster transferred its interest in the BB 2009 Trust to Dish.

NCR’s license agreement with the BB 2009 Trust runs through January 23, 2016, according to a complaint filed by the company with the U.S. District Court in Wilmington, Del. But in May, the Blockbuster trust notified NCR that it was terminating the contract.

NCR contends that Blockbuster has no grounds to end the trademark licensing pact. Moreover, “termination of the license will work a substantial hardship on NCR,” writes Melanie Sharp, an attorney representing the Duluth, Ga.-based company, in court papers. “NCR has undertaken significant time and expense in establishing and operating kiosks throughout the United States branded with the [Blockbuster] trademarks, and has earned substantial revenues from those operations.”

Blockbuster has yet to respond to the suit.