Marketshare Telecom, L.L.C. v. Ericsson, Inc.
Aug 15, 2006OUTCOME: Interlocutory appeal partially successful
We represented Marketshare Telecom, the (then) sole distributor for Ericsson PBX products in the U.S. and Canada. Marketshare had been successful in marketing and expanding the Ericsson PBX brand. Fo ... llowing a dispute between the parties, Ericsson terminated its contract with Marketshare, sued it and obtained a temporary restraining order (TRO) against its former distributor from, among other things, doing business with the product end users ("VARs") that Marketshare had located and developed relationships with. The TRO contained numerous restrictions on Marketshare that we believed were unconstitutional restraints. On behalf of Marketshare, we countersued for breach of contract and other related claims and applied for our own injunctive relief. Following an evidentiary hearing, the trial court denied our injunction request and granted Ericsson's. We appealed. The Dallas Court of Appeals agreed with us that significant portions of the Ericsson injunction were unconstitutional, but unfortunately, that the trial court did not abuse its discretion in denying our injunction and granting Ericsson's (as modified).