Amazon.com Inc. has lost the latest round in a lawsuit that has been before Massachusetts courts since 2003.
The Appeals Court of Massachusetts has upheld a lower court ruling in favor of Basis Technology Corp., which helped Amazon develop its Japanese-language web site. The site launched in 2000 and Basis Technology sued Amazon in 2003 over nonpayment of certain fees related to its work. The sides initially agreed on a settlement the following year, but Amazon backed out. A lower court subsequently ruled that Amazon was obligated to follow through on the settlement, and the appeals court agreed in a ruling this week.
The ruling requires Amazon to make certain payment to Basis, to give up its seat on the board of Basis and to allow the technology company to resume using Amazon’s name and logo in its marketing materials. Amazon gained a seat on the Basis board in late 1999 when it invested about $4.5 million in the company.
“We’re pleased the court saw things our way,” says Carl Hoffman, CEO of Basis Technology. “We’re proud of the strategic management and technology consulting services we offer to American firms to drive their businesses in Asia, and happy those services contributed to Amazon.com’s success in Japan, and are now happier to be compensated properly.”
Amazon did not respond immediately to a request for comment on the ruling.
Amazon.com is No. 1 in the Internet Retailer Top 500 Guide.
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