Penurious Penguin writes "Fuhu Inc., maker of the $199 children-tailored Nabi tablet, is suing Toys R Us. The lawsuit arises after a legal agreement (ended in January) between Fuhu and Toys R Us went awry and Toys R Us released a similar product of their own, the $150 Tabeo. The dispute alleges that Toys R Us may have intended from inception to eventually abandon the Nabi for their own future variation, the Tabeo, presumably after gathering sufficient understanding of Fuhu's design concepts and business strategies.
A ZDNet article quite thoroughly covering the story notes some of the formidable investors behind Fuhu, including Acer Inc., Kingston Digital, and Foxconn Digital Inc. Fuhu also sells through retail stores such as WalMart, Target, Best Buy, GameStop and Amazon.com.
Another more-recent ZDNet article further analyzes the story here."
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