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TDM Wins Court Fight Against Birch, Seeks Damages

By Kelly Teal
January 14, 2014 - News
Continued from page 1

When the judge will act remains unknown. It's also not clear whether Birch plans to appeal the jury's ruling; the company did not immediately respond to a Channel Partners inquiry.

On the whole, the TDM victory sets a precedent for indirect channel partners, Bowling said.

"It establishes court-tested words that agents can include in their contracts to ensure that they are not the victim of being left out of an acquisition," said Bowling. "Agents are linked to carriers by our contracts, and if a carrier chooses to sell, whether it's their assets or whatever, we are still linked to that sale, and it is critical that that link remains. If a customer is generating revenue and there is commission being paid on that customer's revenue, it stays regardless of what happens in the sale."

If that precedent became undermined, the agent channel would not have incentive to exist, Bowling noted.

"The agent channel isn't there unless there is some form of good faith trust with us and the carriers," he said. "If agreements are going to be structured so they can eliminate the agent, why does any agent ever want to be doing that?"

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