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Kindle accessory maker sues Amazon for extortion

December 28th, 2011 at 1:50 PM

M-Edge Accessories has filed a lawsuit against Amazon with a federal court in Maryland that accuses the online retailer of bullying it into coughing up higher commissions in exchange for better placement on Amazon’s website. M-Edge Accessories isn’t just filing a suit for extortion according to The Wall Street Journal, however — the accessory maker is also accusing Amazon of patent infringement, false advertising, creating unfair competition and hampering M-Edge’s customer relations. Amazon reportedly played some pretty dirty games with M-Edge in order to secure a larger percentage of commissions. M-Edge said it initially signed a deal with Amazon that would provide the retailer with a 15% commission on all goods sold. Amazon allegedly came back two months later and demanded a larger 32% commission. When M-Edge declined, an executive told M-Edge that Amazon would “de-list,” “play” with, or bury the accessory maker’s products so that “no one will be able to find you.” M-Edge eventually signed a new contract with Amazon, but it had to pay $6.5 million in commissions in order to do so. Even still, Amazon allegedly left its products off of the “Amazon Approved Accessory Maker” list. M-Edge is also suing Amazon for patent infringement and is arguing that it holds a patent for a Kindle case with a built-in reading light.

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