(CN) – Amazon.com agreed to pay $51 million to settle a contract dispute with Toys R Us, according to a filing Friday with the Securities and Exchange Commission.
The New Jersey-based toy retailer filed suit in 2004 over an online selling partnership agreement with Amazon.com, a Seattle company. The agreement, drafted in 2000, gave Toys R Us exclusive rights to sell some of its products on Amazon.com for a 10-year period.
But the Internet giant started letting other toy retailers sell children’s products on the Web site, Toys R Us claimed in the suit, filed in New Jersey court. Amazon fired back, saying Toys R Us failed to keep items in stock.
A New Jersey court ruled against Amazon in 2006, severing the online strategic partnership.
This spring, an appeals court upheld the decision, but ordered the lower court to reconsider damages. Toys R Us sought $93 million in damages in trial court, according to a separate Amazon filing.
Amazon is slated to pay out the $51 million in the third quarter of 2009.
Toys R Us plans to launch an independent Internet store to sell its products.