M-Edge Files Lawsuit Against Amazon For Patent Infringement, Fraud

A small company has filed a lawsuit against Amazon, accusing the online giant of patent infringement, fraud and coercion.

Odenton, Md.-based M-Edge, a popular manufacturer of e-reader accessories including cases for Amazon's Kindle, filed the suit in Maryland federal court last week, stating, "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."

The 15-page filing documents Amazon's deteriorating relationship with M-Edge. The sales relationship, which began in 2008, took on the traditional standard reseller contract, which garnered Amazon an 8 percent commission on M-Edge's products.

After a mention on "The Oprah Winfrey Show" in October 2008, M-Edge's products quickly became top sellers on Amazon. Three months later, Amazon issued the first reassessment of its contract with M-Edge, which would promote M-Edge to a "Kindle Compatible" agreement, requiring the company to pay an additional 7 percent in fees to Amazon.

Over the next few years, Amazon continued to revise M-Edge's contract and increase its fees on the company's sales, totaling 32 percent in commissions and fees by a contract signed July 2010. Between then and January 2011, M-Edge -- whose sales through Amazon.com accounted for 90 percent of the company's revenue -- reported negative repercussions after refusing to accept new terms and conditions proposed by Amazon. The company claims Amazon began manufacturing its own lighted e-reader jacket, which was a direct knock-off from the company's patented design, and went as far as "de-listing" M-Edge, making the company's product less visible on the site and tampering with M-Edge's relationships with other retailers.

Amazon has yet to comment on the suit, which requests a trial by jury, but Devon Mish, a spokesperson for M-Edge, told The Huffington Post, "We believe in our intellectual property rights and will vigorously enforce them when we feel they are being infringed upon."

Comments

[loserbmx1]

09:15 PM on 04/25/2012

amazon sucks. they put my account on hold 5 weeks ago and they said somebody would contact me within 24 hours to fix my account. my account had 15 dollars on it and also 20 dollars of stuff i recieved broken that i cant send back. amazon is selfish, they dont care about YOU, as long as they have YOUR money their happy.

[Anya Snyder]

04:48 PM on 06/06/2012

This is so true. I just have requested to close my Amazon Seller Account; they closed my Buyer Account, too. So that they can pocket the balance on my Gift Card; hope this will help them stay afloat. STAY AWAY FROM AMAZON.

[blacquePattie]

08:54 AM on 07/19/2012

AGREED!!! NEVER USE AMAZON.... dont seller there, dont buy there. you will get screwed.

[blacquePattie]

08:28 AM on 07/19/2012

amazon needs to be sued by the consumers for their CONTINUED bullying of sellers, diliberate delays in answering questions, holding funds belonging to sellers, continuing to NOT be available for phone or email conversations to resolve issues (caused by them), and their ridiculous wordy statements written purposely to confuse.

[l monroe]

11:38 PM on 01/06/2012

Ole John D. Rockefeller would be proud.

[annibanni]

08:16 AM on 01/02/2012

Happy New Year 2012 www.suppliesgroup.co.uk

[Live Channels]

02:26 AM on 01/02/2012

to promote your business buy and sell just advertise free on http://www.adverts.pk

[oilfield]

08:59 PM on 01/01/2012

this will be an interesting one.....google and amazon is in to the pockets of the businesses it claims to help. ebay is another one that wants their almost 10% cut after paypal fees.

[frank1946]

09:56 AM on 12/29/2011

Amazon is anti-social, I Boycott them !

They pay no local sales tax, they simply could care less about Towns, Cities, etc.

Barnes and Noble gets my $$$.

[loserbmx1]

09:19 PM on 04/25/2012

i agree. they stole 15 dollars from me and ive been waiting 5 weeks to hear back from amazon.
they car about nothing but money.

[Scott Kenan]

09:07 AM on 12/29/2011

You GO, M-Edge!!!

Amazon DE-LISTED my Tennessee Williams memoir to "draft" status, so that while still selling it, it became very dificult for customers to find.

My book got RAVE reviews from John Lahr of THE NEW YORKER and others. See: http://scottkenan.blogspot.com/2011/12/professional-reviews-of-walking-on.html .

AMAZON DELETED THESE REVIEWS FROM THEIR SITE AFTER THEY HAD ALLOWED THEM FOR SEVERAL MONTHS!!!!!

See my political blog for how the Republican Party KILLED the hard-cover edition by Alyson Books in April 2010 -- I was to be the "featured release."

Why??? Because I know and can prove in court that operatives of the Republican Party not only murdered Tennessee (John Uecker did it -- as verified by TW's now deceased brother Dakin in HIS memoir and write and Williams friend Dotson Rader in HIS published memoir. Dotson's career as the highest paid magazine writer in America -- he had a weekly collumn in PARADE newspaper insert mag -- was KILLED), but illegally overturned TW's will codicil through bribery of several people I knew and some of whom admitted it.

I was at Jean Stein's and George Plimpton's party, Jan. 22. 1982, when Jackie Kennedy Onassis told TW how our government murdered JFK, RFK, and MLK Jr. He wrote the codicil to try to avert his own murder -- which she told him was coming.

My book: http://www.amazon.com/WALKING-GLASS-TENNESSEE-WILLIAMS-ebook/dp/B0053480S2/

My political blog: http://scottkenan.blogspot.com .

[loserbmx1]

09:20 PM on 04/25/2012

could i have another link to buy your book cause i refuse to buy from amazon.

[NOV 2012]

08:04 AM on 12/29/2011

M-Edge makes great products. If you are looking for a case for your new Kindle Fire, get the M-Edge case.

[GrimAdventures]

07:15 AM on 12/29/2011

This David vs. Goliath scenario is not surprising considering what Amazon attempted during the Christmas holidays:

http://www.lowellsun.com/editorials/ci_19504460

http://current.com/groups/news-blog/93569984_amazon-stealing-christmas-shoppers.htm

I find myself not shopping at Amazon even though it's very convenient. Just can't bring myself to anymore, especially in light of the sentiments expressed in the first article.

[FiredUpRTG]

11:04 AM on 12/29/2011

There's nothing wrong with the tactics in those links; regular stores do it all the time to each other. If someone likes to buy online, they would have been checking prices in the store and going home to buy already. Those who are wary of the internet, will not.

I hate buying in stores, but appreciate being able to look and touch unfamiliar things before I go home.

The solution for the stores is to create websites where people can visit their store, get a code and purchase their products online for the same measly $5 discount for an over $100 purchase.

The M-Edge case is not fair. It's cowardly. Amazon should put their product next to M-Edge's and let people decide.

[hammergonewild]

07:14 AM on 12/29/2011

What's with the greed? Does anyone think those increased percentages are going to Amazon pickers who are poorly paid and must work in deplorable summer conditions? Bezos should be ashamed of himself, but I guess that won't happen since his friends are in the same practice. HOW MUCH MONEY CAN ONE HUMAN SPEND?

[questiontheblogs]

08:14 AM on 12/29/2011

Are you refering to the greed of the consumers who will only buy from the cheapest supplier regardless of the social and economical impact?

I'm NOT defending Amazon here. If they did as charged, they will lose in court, or settle and the aggreved party will be reimbursed. I too am disturbed and concerned with the size and power of the new mega corporations: Apple, Google, Facebook, Amazon, etc. not be cause they don't have great products and services, but that they are using their market power to squeeze out all other competition. I hope our Justice Dept. and Congress is keeping a watchful eye on them.

[fastd63]

05:04 AM on 12/29/2011

Great a new American business class.to big to compete.

[l monroe]

11:58 PM on 01/06/2012

Renegotiate, and steal when that will not work. It took the inventor of stuttering windshield wiper ten years after every car manufacturer infringed upon his patents to get a judgement against them. even then they profited more from him than he ever got back from lost income. Design it, build it, perfect it, watch it get stolen is now the American way. If you can get a dollar from each item made by yourself are you gonna get that much back. Most of the time it is just 15% of what value of the item was taken by big business. Corporations get a 100 year patent, if an inventor is stupid enough to put it in his own name, it will be stolen. Guaranteed. they will delay eight years, refusing the desist order, and then draw out a two year trial to prove they stole it then pay fifteen percent of the damages. put the profit in a compound interest account from the first years sales and the rest are profit.

[congressive]

03:41 AM on 12/29/2011

Bezos is the 1% and the system is rigged in his favor. Not collecting taxes is one way, bludgeoning the little guy like this is another.

[Karelh]

12:06 AM on 12/29/2011

There's a shocker, Amazon doing something unethical and trying to screw a small company.

[loserbmx1]

09:29 PM on 04/25/2012

shocker? This is a normal for amazon you just never hear about it. they make sure you dont.

[JustinBiever]

11:04 PM on 12/28/2011

have you ever noticed when you go to amazons mobile site it is so easy to accidentally add something to your basket. they way they place the "add to cart" right next to the listing links you cant help but accidentally add a high percentage of the time. bezos out of america and palestine!!!

[GonzoFactor]

12:32 AM on 12/29/2011

It's your responsibility to check your cart before you check out.

[squatmunkie]

12:48 AM on 12/29/2011

And? If you buy something by accident Amazon is the best company in dealing with returns. mails get answered super fast and you can chat with someone 24/7. Combine that with low cost items, free shipping and no tax...you get the best place to shop.

[congressive]

03:37 AM on 12/29/2011

Wrong. There IS tax...Amazon just doesn't collect it. In California, you declare out of state purchases on your state income tax form that didn't include sales tax at time of purchase.

Amazon is just gaming the field. Bezos is making his next billion by assisting tax cheats and inconveniencing honest taxpayers.

[Anthony Dodd]

11:00 PM on 12/28/2011

You see? So many think Android and Kindle offer something different from stunning corporate greed.

Think different.