The agreement initially provided for an extension from month to month after expiry, but in 2013 the contract was amended to run until termination by one of the parties, according to the complaint. The amendment also included a number of rate increases. Kohl was required to pay $36.38 per month per site between August 1, 2015 and July 31, 2018. She did not pay a fee after July 31. According to court records, Kohl`s submitted a bid from several suppliers, including DMI, more than a year before the end of the contract. Kohl says he informed DMI that he would switch suppliers nine months before the end of the contract, and the two parties have different interpretations on how to conclude their business relationship. According to the complaint, the two companies initially signed a five-year contract in 2008. The agreement required the payment of coal of $33 per month per site. In return, Disc Marketing provided approved music with 12 professionally produced messages and added these messages 125 per month. Additional additions cost Kohl $10 per insertion. Disc Marketing LLC or DMI filed a complaint in November in the U.S. District Court for Eastern Wisconsin, in which they claimed that the Menomonee Falls-based retailer had refused to pay nine months of service after denouncing the agreement reached between the two companies in April 2018.
A California-based company that has provided Kohl`s Corp. with in-store music and messaging services over the past decade says the retailer still owes more than US$390,000 at the end of its deal. Kohl announced in April 2018 that it would cancel the agreement on August 1. In his counter-complaint, Mr. Kohles stated that both parties were required to sign a confidentiality agreement when the agreement began. Kohl seeks to dismiss the case and argues that the agreement was broken with the filing of the complaint. Representatives for Kohl and Disc Marketing did not immediately respond to requests for advice on the case. Kohl told the Federal Court this week that he had complied with the bulk of the contract.
The company also argued that DMI had breached its own contract by disclosing confidential information when it filed the lawsuit. The retailer accuses the California-based company of violating the privacy of Disc Marketing, which continues to provide services until July 31, with kohl`s paying $43,428 a month.