etoy Corp. Sues eToys Inc. For Trademark Infringement.

Business Editors & High-Tech Writers

ZURICH, Switzerland and SAN DIEGO--(BUSINESS WIRE)--Jan. 25, 2001

etoy.VENTURE association aka etoy Corp., announced today it had filed a lawsuit in federal court seeking a definitive resolution to its long-running dispute with eToys Inc.

The dispute generated considerable public attention last year when eToys Inc. filed a trademark suit against etoy Corp. in an attempt to gain control of the ETOY.COM domain which is owned and operated by the etoy Corp. eToys Inc. eventually agreed to drop the suit and pay up to $40,000 to the etoy Corp. to cover legal fees it incurred in its defense.

The new lawsuit, filed in federal court in San Diego (Case No. 01cv0136J) alleges that the "etoys" trademark registered to eToys Inc. (Reg. No. 2,191,558) is invalid and violates etoy Corp.'s rights in its "etoy" trademark (Reg. No. 2,411,648). The suit seeks the cancellation of the "etoys" trademark and seeks to prohibit eToys Inc. from infringing on the "etoy" trademark. In addition, etoy Corp. seeks an order transferring the ETOYS.COM domain name to the control of the etoy Corp. In a separate action, the etoy Corp. filed a formal opposition with the United States Patent and Trademark Office to eToys Inc.'s trademark application SN 75/611,845.

"Nobody invests to lose money," said Stamberger, a spokesperson for the etoy Corp. "We have attempted to negotiate a solution to this dispute for several months without success. We have several projects on hold until this situation is resolved. It just doesn't make business sense to spend money to promote a global brand when there is a dispute over its ownership. We owe it to all of our stakeholders to invest our resources wisely."

Chris Truax, one of the etoy Corp.'s U.S. attorneys, said that etoy Corp. has a clear legal right to use the "etoy" trademark. "The etoy Corp. was receiving international recognition and awards for its work before eToys Inc. was even founded. It is unfortunate that it has come to this. However, eToys Inc. has continued to press claims that directly infringe on the rights of the etoy Corp. By obtaining a legal ruling establishing its superior claim on the "etoy" trademark and preventing eToys Inc. from infringing on that mark, we can resolve this situation once and for all in a way that will be binding on eToys, Inc. and its successors."

etoy Corp. is an international art and entertainment group providing high-interest cultural dividends. For further information, visit the etoy Corp. Web site at http://www.etoy.com/tmlawsuit2001 or contact the etoy Corp. Press Office by phone at ++41 1 242 40 81. //etoy.TANK14/ZURICH//