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Nabi Tablet Maker Files Lawsuit Against Toys R Us

Things are heating up in the kid tablet market. Fuhu, the creator of the Nabi tablet, accused Toys R Us for allegedly stealing trade secrets. Fuhu, which filed a lawsuit in a San Diego, California Federal Court last Monday, is seeking help to prevent Toys R Us from selling the device before the holiday season, a lucrative time for many electronics companies. Moreover, it wants all Tabeo tablets to be submitted to them. The company is also asking for monetary damages.

Among Fuhu’s accusations against Toys R Us are “fraud, breach of contract, unfair competition and trade secret misappropriation.”

In the lawsuit, Fuhu claims that Toys R Us comes with a bumper that was copied from the butterfly-shaped silicone casing of the Nabi tablet.

Fuhu furthermore details that it began selling the Nabi tablet at the toy retail giant’s store in November 2011 after Toys R Us signed an agreement to be its exclusive distributor a month earlier.

According to Fuhu, however, Toys R Us did not exert effort in promoting the Nabi tablet. Furthermore, Toys R Us allegedly ordered from them only a few tablets more its expected number of tablets sold per day for the holiday season.

Fuhu and Toys R Us officially ended their partnership to exclusively sell the Nabi tablet in Toys R Us outlets last January.

Fuhu says, however, that the introduction of the Tabeo tablet was able to clarify to them why Toys R Us behaved in such a way regarding the Nabi tablet.

Meanwhile, Toys R Us has not released its official statement about the lawsuit.

The Nabi tablet, it may be recalled, retailed for $199, which is more expensive than the $149.99 price of the Tabeo. The latter, as Toys R Us announced, comes with dual cameras, a 7-inch touchscreen, Android 4.0 Ice Cream Sandwich, Wi-Fi connectivity, HDMI output, and 4GB of memory.

via pcmag, reuters