again....."They all wanted a piece of the pie!!!.....lol"
Company questions MyScreen contract with Claro
share to twitter share to facebook share to google buzz monday, december 14, 2009 BY FERNANDO PAIVA
A mobile advertising service in implementation at Claro is threatened by a legal dispute between two other companies that, until last August, were partners: Brazilian Sambora Participações, executive Marcelo Ballona (formerly Bandeirantes, Submarino and Yahoo Brasil), and Canada's MyScreen, which owns the giant Orascom as a shareholder. The service in question consists of the display of advertisements on the screen of the cell phone at the end of the calls. The technology was developed by MyScreen and Sambora was its sales representative in Latin America and in some other markets until August 1st. Almost three months after the contract expired, it was reported that Claro would launch the service after its parent company América Móvil signed a contract with MyScreen. Sambora argues that it has done all the previous work of contact and presentation of the product to the customer and wants to receive a commission for it. Ballona intends to file an injunction in the Common Court to block the service in Brazil and requested the Brazil-Canada Chamber of Commerce to open an arbitration proceeding. Meanwhile, MyScreen claims it has done nothing wrong and threatens to file damages action against Ballona. Claro preferred not to comment, because it is considered a problem regarding the relationship between MyScreen and Sambora.
The contract between the two companies was valid for 12 months. Sambora had the right to sell the service without exclusivity in Latin America, Portugal, Spain and Japan. However, there was a list of operators to be prospected exclusively by Sambora in these markets. Neither América Móvil nor specifically Claro do Brasil are included in the original list. However, a clause in the contract makes room for the list to be updated at any time, subject to mutual agreement between the two parties. In addition, the contract has a non-compete clause, which protects Sambora's prospects for nine months after the end of the contract, ie until May 1, 2010. Ballona argues that he has documented all trading with various including Claro Brazil. And he says that MyScreen was aware of these contacts with Claro. MyScreen, for its part, says there is no evidence that Ballona had entered into an agreement with Claro.
According to Ballona, ??his company would be entitled to receive the equivalent of US $ 300,000 from MyScreen for the contract signed with Claro, as it is a tier 1 operator (with more than 10 million subscribers), and 30% of gross revenue from the advertisements advertised on the service.
Service
Currently, the MyScreen service is being implemented in four América Móvil markets: Brazil, Mexico, Chile and Argentina. Launches are expected for the beginning of the year. MyScreen also plans to launch in 2010 the Orascom carrier platform in the Middle East and Europe, as well as Turkecell, Turkey, with which it conducted tests this year.
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