• Toys "R" Us Sued for Allegedly Stealing Trade Secrets
  • October 5, 2012 | Authors: Jacey Kaps; Allan J. Rotlewicz
  • Law Firm: Rumberger, Kirk & Caldwell Professional Association - Miami Office
  • 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.