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Tablet maker sues Toys R Us over kid-oriented tablet computer

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A Los Angeles maker of kid-oriented products is suing Toys R Us Inc. for allegedly ripping off its business plan to sell a tablet computer geared for children.

In a suit filed in federal court in San Diego, Fuhu Inc. accuses the toy giant of stealing trade secrets and trademark information to launch its own $150 tablet called Tabeo, which will hit store shelves next month.

Last holiday season, Fuhu sold a similar tablet called Nabi exclusively through Toys R Us before terminating the agreement in January. The company alleges that Toys R Us did not follow through with promises to advertise and order the Nabi in sizable quantities, but then used its strategy for its own Tabeo tablet.

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“We shared with them the whole ecosystem of the Navi tablet,” Fuhu Chief Executive Jim Mitchell said. He said some of the strategic tactics that was shared with Toys R Us included putting a rubberized border -- called a bumper -- around the device, working in parental controls and pre-loading the tablet with apps.

Mitchell pointed to tabeo’s green bumper and pre-loaded apps as evidence proving that Toys R Us ripped off Fuhu’s plans. The Los Angeles company earlier this summer launched Nabi 2, a second-generation version of its tablet that will compete with the Tabeo this holiday season.

Toys R Us spokeswoman Jennifer Albano declined to comment. “We have not had the opportunity to review the filing you reference,” she said.

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The lawsuit is just one more lawsuit raging in the highly competitive tech industry as players try to one-up each other not only in innovation but also in court -- by frequently accusing rivals of stealing intellectual property.

Ronald Katz, a lawyer representing Fuhu, said the company is seeking a preliminary injunction against Toy R Us to stop the toy giant from selling its tablet.

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Follow Shan Li on Twitter @ShanLi

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