On September 24, 2012, Fuhu, Inc. filed suit against Toys
"R" Us alleging the toy retailer stole trade secrets in
creating its children's tablet computer, the Tabeo. The
lawsuit, filed in the U.S. District Court, Southern District of
California, alleges breach of contract, fraud, unfair competition
and trade secret misappropriation. According to the lawsuit, in
October 2011 Toys "R" Us agreed to become the exclusive
distributor of Fuhu's Nabi tablet computer. Fuhu alleges that
Toys "R" Us did almost no promotion and the relationship
ended in January 2012.
Recently, Toys "R" Us announced its Tabeo Kids Tablet,
set to start shipping on October 21, 2012. Fuhu alleges Toys
"R" Us stole trade secrets in designing the Tabeo Kids
Tablet. Fuhu asks the Court to order Toys "R" Us to stop
selling the Tabeo, that all Tabeos be turned over to Fuhu, and
unspecified money damages.
Fuhu has sought a temporary restraining order to not allow Toys
"R" Us to sell the Tabeo, including taking any internet
orders for the device. Toys "R" Us alleges the lawsuit,
and the temporary restraining order, are sought to limit
competition during the 2012 Christmas season. Toys "R" Us
points to Fuhu's request for a 3 month injunction as evidence
of Fuhu's interest in limiting competition during the Holiday
season. The hearing on the temporary restraining order is set for
late October, 2012.
The case is Fuhu Inc. v. Toys R Us Inc., Case No. 12-CV-2308,
U.S. District Court, Southern District of California.
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