An accessories company has sued the Internet giant for alleged sabotage, making it the latest in a series of little guys who are calling the retail giant a bully. M-Edge, which sells Kindle covers, has filed a suit in Maryland court for patent infringement, unfair competition, intentional interference with contracts and false advertising. The accessories company claims that Amazon tried to eek a higher cut than originally negotiated, reports Stu Woo in today's Wall Street Journal.
M-Edge claims that it had negotiated to give Amazon a 15 percent cut of all sales in a November 2009 during the course of a 3-year contract. Two months later, Amazon wanted 35 percent cut and threatened to removed M-Edge's offerings from the site if it didn't comply, forcing the company, with 90 percent of its profits coming from Amazon.com sales, to pay $6.5 million in fees.
"This case presents a classic example of unlawful corporate bullying,” writes the suit. “M-Edge developed a very successful product line: personal electronic device jackets with multiple features for the Kindle and other e-readers. Amazon thereafter repeatedly sought to hijack the product through threats, deceit, interference with M-Edge’s customer relationships, and patent infringement.”