Feeds

Amazon wins reprieve against Toysrus.com

Injunction lifted

  • alert
  • submit to reddit

The essential guide to IT transformation

An appeals court this week lifted an injunction from Amazon.com in its dispute with Toysrus.com, according to the Associated Press. It follows a lawsuit filed last year by the toy seller, accusing Amazon.com of breaching an exclusivity agreement.

Toysrus.com, the internet subsidiary of Toys 'R' Us, sued Amazon.com in May 2004. It alleged that Amazon.com had violated an agreement signed in 2000 stipulating that Toysrus.com would be the only authorised seller of toy, game and baby products on the Amazon.com platform – a deal for which Toysrus.com is reported to have agreed to pay $200m.

The lawsuit accused Amazon.com of breaching the exclusivity part of the deal. In early June, Toysrus.com won an injunction, prohibiting Amazon.com from allowing other sellers to use the site for the sale of toys, games and baby products.

Amazon.com then filed its own lawsuit, asking the court to end the agreement and to award it $750m in damages. According to press reports, it accused Toysrus.com of a “chronic failure” to comply with the contract terms by failing to have sufficient products in stock, and in failing to choose the top-selling toys.

The injunction, which had already been eased following arguments by the bookseller that the injunction would prevent it launching a new graphical user interface service, has now been lifted.

According to the Associated Press, the State Appeals Court ruled that Judge Margaret McVeigh had not properly considered the language of the contract between the two firms when granting the injunction.

Representatives from both Amazon and Toys R Us refused to comment on the ruling.

The case is due to go to trial on 13 June.

Copyright © 2005, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

Related link

The Associated Press report (on SiliconValley.com)

Related stories

Amazon bids adieu to French jobs
Amazon goes to court to fire Toysrus.com

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.