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 $200 million.
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 $750 million 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 13th June.
