Newad Opposes Rouge Media & Chapter 66's Membership Request to COMB
August 12, 2009 —
Newad announces that it opposes the recent request by Rouge Media and Chapter 66 to become members of COMB, since these companies are violating Newad’s exclusive advertising rights. Accordingly, Newad has instituted injunction proceedings against Rouge Media and Chapter 66 to put a stop to these illegal practices. The proceedings aim at ordering Rouge Media and Chapter 66 to stop soliciting establishments bound to Newad by exclusive advertising agreement, and to remove all advertising banners installed by the two companies in establishments that are under exclusive space license agreements with Newad. These practices constitute incitement of these establishments to violate their exclusivity obligations. Newad has recently obtained, in another case, a permanent injunction against Power Medias, for similar practices.
“As the first indoor advertising company to join COMB in 2004, Newad has invested a lot of time and money to develop TraffikTM, a circulation methodology which became the industry standard in 2005. We are open to licensing this methodology to other users in the industry, including our competitors. We are, however, opposed to granting user licenses of the Traffik methodology to companies that breach our rights and do not respect pre-established agreements”, concludes Michael Reha, president of NEWAD.