Toys 'R' Us yesterday announced that its online arm, Toysrus.com, has won its lawsuit against online partner Amazon.com.

The decision by the Chancery Court in New Jersey follows the filing of a suit by Toys 'R' Us in May 2004.

The ruling finally severs the August 2000 online trading agreement between Toys 'R' Us and Amazon.com, effectively allowing Toysrus.com to run its own independent retail website.

"We are pleased that the court reached a verdict favourable to Toys 'R' Us in the company's litigation with Amazon.com," said David J. Schwartz, general counsel for Toys 'R' Us.

"Our goal was to protect the Toys 'R' Us brand while continuing to provide a positive shopping experience for our online customers. This ruling allows us to do that."

John Sullivan, senior vice president of Toysrus.com, added: "We have been preparing for today's decision and expect to provide seamless online access for our customers at Toysrus.com.

"Tighter integration of our online business with our bricks and mortar locations will enhance customer service by creating a more unified web and retail shopping experience."

Amazon is reported to "strongly disagree" with the judge's ruling and is currently in the process of reviewing a "number of options".