A new advertising concession at Bermuda's airport looks set to go ahead after the Bermuda Supreme Court lifted an injunction preventing local company Bermuda Airport Advertising Ltd. (BAAL) from carrying out a contract.

The Court also ruled however, that the US company which initially pitched an advertising package in partnership with BAAL, Interspace Airport Advertising Ltd. (Interspace), was entitled to keep its proprietary information. Interspace is also suing BAAL for breach of contract and for taking Interspace's intellectual property.

The dispute between the two companies centred around who would be in control of a company that was to be formed by both companies and how profits would be distributed.

The matter ended up in court after the two sides failed to reach an agreement.

In June, Interspace won an injunction through an ex parte hearing which had the effect of preventing BAAL from becoming operational.

On July 26 Bermuda's Supreme Court issued an order which removed any restraint on BAAL from proceeding to carry out its contract for the advertising concession at the Bermuda International Airport.

BAAL is a wholly owned subsidiary of Evoke International Ltd, the advertising company run by Bermudian political commentator Walton Brown.

The hearing was the first opportunity for a Supreme Court Judge to hear pleadings from both sides.

In a statement to The Royal Gazette, Interspace said: "The Supreme Court has upheld in part and struck in part the injunction against Evoke International Limited and Bermuda Airport Advertising Ltd from operating the display advertising concession at the Bermuda International Airport. The court let stand the injunction against the use of the designs, materials, concepts, business plans and property prepared by the US company Interspace Airport Advertising for the formal proposal to the Ministry of Transport, including the prohibition against Evoke or Bermuda Airport Advertising using any of the over $570,000 (annually) in client contracts prepared by Interspace for use in the advertising concession at the airport."

A spokesman for Interspace also said the company had been advised by its attorneys that the standing injunction continues to effectively restrict Evoke and Bermuda Airport Advertising from carrying-out the terms of the prospective concession contract with the Government.

Further, Interspace has advised its clients, including many of the major corporations located in Bermuda, that, in accordance with the court order, Evoke and Bermuda Airport Advertising may not use the client contracts prepared by Interspace.

Interspace added: "Many Bermuda businesses, knowing of the situation, have notified Interspace that they will not do business with Evoke or Bermuda Airport Advertising."

Interspace also said they have instructed their Bermuda attorneys to continue the suit for damages against Evoke and Bermuda Airport Advertising. Interspace is understood to be seeking large damages for breach of contract and the improper taking of its property.

And in a warning to the Bermuda Government, Interspace also said: "Interspace believes that the Government would send a cynical message were it to proceed to contract under these circumstances. Evoke and Bermuda Airport Advertising do not have the ability to provide the designs and materials promised to the Government and required by the prospective concession contract, and continue to be enjoined by the Court from doing so.

"The Government is aware that it was Interspace that prepared the formal concession proposal, received a joint award, created $570,000 in annual advertising commitments and was prepared to provide, through a Bermuda operating partnership, the exact advertising program promised - including hundreds of thousands of dollars in capital investment into the airport and hundreds of thousands of dollars in additional revenues to the Government. Under these circumstances, the Government should not be party to the misappropriation of Interspace's property and interest in the concession award."

Despite the continuing legal action, BAAL president Walton Brown said: "I am delighted by the decision issued by the Courts. We are now able to put into place an exciting programme showcasing the link of the two pillars of our economy, tourism and international business, and promoting the diversity of Bermudian culture."

Mr. Brown said that this week, all companies who indicated a desire to place advertising at the airport would be contacted to confirm their continued interest.

Mr. Brown said BAAL was working with local artists and designers to create a visually enhanced environment at the airport, while promoting local and international companies.

Mr. Brown also said Government had approved BAAL to undertake the contract but was awaiting clarification by the courts of BAAL's ability to proceed.