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Appeals Court Lifts Toys 'R' Us Injunction Against Amazon

by Glen Shapiro, LawAndTax-News.com, New York

15 April 2005

It emerged earlier this week that a US appeals court has lifted an injunction obtained by Toys 'R' Us against online retailer Amazon.com.

Toysrus.com had signed a $200 million exclusivity deal with Amazon in 2000, which stipulated that it would be the only authorised seller of baby products, toys and games on Amazon.com.

However the toy retailer last year accused Amazon of breaching the terms of the deal, and obtained an injunction preventing Amazon from selling such products offered by other firms.

Successfully obtaining a partial easing of the injunction on the grounds that it would otherwise be prevented from launching a new graphical user interface, Amazon launched a countersuit against Toys 'R' Us, requesting that the exclusivity agreement be ended, and that it be awarded $750 million in damages.

The retail portal accused Toysrus.com of a "chronic failure" to offer it the top-selling toys, and of failing to ensure that it had sufficient products in stock.

The injunction against Amazon was lifted on Tuesday, on the grounds that the lower court judge had failed to consider the language of the contract when granting it, and the case itself is expected to go to trial on June 13.

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