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Toys R Us Sued Over Android Tablet Copies
Published on:
The USA based children's toys retailer, Toys R Us is being sued by a media tablet manufacturer who alleges the retailer stole its trade secrets in order to launch a competitor product.
Last year, Fuhu launched a children's version of the Android tablet, called the Nabi, with the retailer in the USA. This Christmas, the retailer is planning to sell its own in-house developed Android tablet instead, the Tabeo tablet.
In response, Fuhu has launched a legal bid to block the retailer selling the Android tablet after accusing the company of signing the deal last year simply to secure access to the underlying technology and design.
Specifically, Fuhu is alleging fraud, breach of contract, unfair competition and trade secret misappropriation.
The lawsuit also claims that the toys retailer did not offer the promised marketing support for the Fuhu tablet last year and that sales over the term of the contract were equivalent to what the company was lead to believe would be possible in a single day. However, a press release from the company on the 8th December last year claimed that sales had exceeded expectations and that the tablet had sold out.
"Toys R Us used Fuhu's trade secrets and confidential information to start selling Tabeo, which systematically attempts to replicate the Nabi experience, far earlier than Toys r Us could have done otherwise, if at all," the lawsuit said.
Toys R Us is not commenting on the situation until it has had time to review the lawsuit.
ORIX Ventures recently closed a $10 million venture debt financing for Fuhu.
Tags: [android] [toys r us] [fuhu] [USA]
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