• by Wendy Davis  @wendyndavis, March 3, 2006

A New Jersey court has granted Toys 'R Us its freedom from online retailer Amazon.com, ruling that Toys 'R Us can reclaim its domain name, Toysrus.com, and set up its own e-commerce site.

Toys 'R Us intends to move ahead with establishing an e-commerce store within 90 days. "We have been preparing for today's decision and expect to provide seamless online access for our customers to the world's greatest toy store at www.toysrus.com," said John Sullivan, senior vice president of Toysrus.com, in a statement. "Tighter integration of our online business with our brick and mortar locations will enhance customer service by creating a more unified Web and retail shopping experience."

Toys 'R Us and Amazon entered into what was supposed to be a 10-year deal in 2000, under which Toys 'R Us gave up its own site and was supposed to become the exclusive seller of toys, games and baby merchandise at Amazon.com.

Toys 'R Us charged that Amazon later broke this deal by offering toys and baby products from other retailers, including Target.

In a 131-page ruling, New Jersey Superior Court Judge Margaret Mary McVeigh sided with Toys 'R Us, agreeing that Amazon's decision to sell merchandise from Toys 'R Us competitors broke the contract.

As a remedy, she ordered the partnership agreement between the two companies ended. "Amazon.com did not want a ten year agreement with [Toys 'R Us]," she wrote, adding: "Long term commitment in a world where the technology is advancing almost on a daily basis is difficult to maintain."

An Amazon spokesman said the company disagreed with the ruling and was reviewing its options.