Amazon loses appeal in long running Toys "R" Us case

Ever since their ecommerce partnership dissolved in acrimony five years ago, Amazon.com and Toys "R" Us have been duking it out in court. Now, Amazon seems to have encountered another setback in the long-running legal battle. According to Toys "R" Us' annual report, Amazon lost its appeal of a New Jersey court's 2006 order allowing Toys "R" Us to terminate the two companies' agreement.

Toys "R" Us said Amazon lost the appeal on March 24. The toy company said its claim for monetary damages went back to the New Jersey Trial Court for consideration.

Here's the blurb from the Toys "R" Us annual report:

On March 24, 2009, the Appellate Division affirmed the New Jersey Trial Court’s Order with respect to the termination of the Agreement and denial of Amazon’s counterclaim, but remanded to the New Jersey Trial Court for further proceedings on our claim that we are entitled to monetary damages arising from Amazon’s breach of the Agreement.

Amazon spokeswoman Patty Smith said the company had no comment on the new legal developments. A Toys "R" Us spokesman could not immediately be reached.

Amazon and Toys "R" Us teamed up in 2000 in a major ecommerce alliance. The pact was supposed to last 10 years. But the deal soured when Toys "R" Us accused Amazon of breaking an exclusivity agreement. Toys "R" Us sued, and Amazon countersued. The New Jersey court allowed the dissolution of the agreement in 2006.

About Eric Engleman

ERIC ENGLEMAN is senior technology staff writer for TechFlash and the Puget Sound Business Journal, covering online retail giant Amazon.com. Engleman tracks Amazon's increasingly complex business, spanning ecommerce, Kindle, cloud computing, and more. He's been covering technology and other industries for the Business Journal since 2003.

READ FULL BIOGRAPHY

206-876-5430

@ericengleman

Recent Sponsor Posts

Technology Tax Planning – Did You Take The Deduction?

Technology companies require professional advisors who can assist in all aspects of the business. The BDO Technology Practice provides a full range of services tailored to help address the changing needs of domestic and international companies. In addition to core audit and tax services, BDO professionals can assist technology companies with:

· Revenue recognition

· Business combination accounting

· R&D tax credits

· Compensation and benefits

· Business valuations

Backed by 38 national offices and an international network in 110 countries, we have the domestic and global footprint to serve growing technology companies. Contact sphilpott@bdo.com (audit partner), mreeves@bdo.com (audit partner), psmith@bdo.com (tax partner), tzambito@bdovaluation.us.com (valuation), tfiscus@bdo.com, Director, 206.624.2020

MORE INFORMATION

Attention Web Developers

Join the Microsoft WebsiteSpark program and get software, support and visibility – at no upfront cost. You’ll benefit from fast and easy access to current Microsoft development tools, platform technology and server products including Visual Studio, Expression Studio, Silverlight, Windows Web Server 2008 and SQL Server 2008 Web.

Seattle-based Adhost is a WebsiteSpark hosting partner providing dedicated servers with free Windows Web Server 2008 and SQL Server 2008 licensing for three years to Web developers enrolled in WebsiteSpark. Servers are located in our secure data center with SAS 70 Type II certification, 24x7 technical support and 24x7 client access.

Join today.

MORE INFORMATION