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To: Simon Cardinale who wrote (8408)10/17/1998 10:54:00 AM
From: jttmab  Respond to of 16960
 
OT: Another suit... not along the same lines, but I found it interesting. Wonder if Amazon is going to use the NVidia defense, i.e., Walmart is in financial trouble motive. Hey. that has a nice ring..."The Nvidia defense"

Wal-Mart Sues Amazon.com

By RACHEL BECK AP Business Writer

NEW YORK (AP) -- In a battle of booksellers, Wal-Mart Stores Inc. has sued Amazon.com and claimed the Internet company that wants to be the discount superstore of cyberspace is stealing trade secrets.

In a lawsuit filed in Chancery Court in Benton County, Ark., Wal-Mart asked for an injunction against Amazon.com to prevent the Seattle-based company from allegedly trying to duplicate proprietary technology.

The order also would apply to Amazon.com affiliates Kleiner Perkins Caufield & Byers and Drugstore.com.

The Bentonville, Ark.-based company claims Amazon.com recruited its former associates and targeted its vendors to learn more about Wal-Mart's information database, which analysts say is second in size only to the U.S. government. It includes data on sales, inventory and consumer buying habits.

"Our information and logistics systems are world renowned and a key factor in our success," said Robert Rhodes, Wal-Mart senior vice president.

Amazon.com spokesman Bill Curry said his company is not interested in getting trade secrets.

"We're interested in hiring the brightest, hardest-working and most talented people, wherever they might be," he said.

But mimicking Wal-Mart could help Amazon.com expand from its core base of books into other areas of online retailing, said Tim Bajarin, president of Creative Strategies Inc. in San Jose, Calif.

"The bottom line is they are trying to be the Wal-Mart of cyberspace," he said. "Amazon is very smart without pulling the Wal-Mart guys into help them. But there is no question that they can speed up their process of making themselves into the premier site in cyberspace if they have additional experience working with them."

(PROFILE (CO:Wal Mart Stores; TS:WMT; IG:RTB;) (CO:Amazon.com Inc; TS:AMZN;) )

Best Regards,
Jim