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Toys R Us Takes Ball, Amazon’s $51 million, Goes Home

by John Paczkowski
Posted on June 12, 2009 at 3:31 PM PT

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The long-standing legal dispute between Toys R Us and Amazon has been resolved in toy retailer’s favor, but at a much discounted price. In a regulatory filing submitted to the SEC Friday, Amazon said it has agreed to pay Toys R Us $51 million to settle claims that it violated an earlier exclusivity agreement with the company. Quite a sum, but far less than the $93 million in damages Toys R Us demanded when it first sued Amazon in 2004, accusing it of violating their partnership by allowing other merchants to peddle toys and baby products on its pages.

Amazon (AMZN) hasn’t yet commented on the settlement beyond the filing, which offers little more information than that it was “unanticipated” and will be charged to “other operating expense” in the second quarter.

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About John

John Paczkowski has been poking fun at the tech industry and the personalities that drive it since 1997. From 1999 to 2007, he wrote the award-winning tech news Web log Good Morning Silicon Valley for the San Jose Mercury News, Silicon Valley's daily newspaper. Read more »

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