After a four-year legal dispute with Toys R Us, Amazon.com this week agreed to pay the kids' specialist $51 million (£31 million) to end the wrangle.

The move comes after two court rulings went against Amazon in its bid to resist the claims by Toys R Us that it violated a partnership agreement stemming from 2000.

Agreement collapsed

That deal was supposed to see Amazon give Toys R Us exclusivity to sell certain products on the Amazon website, but it crumbled in 2004 when the toy retailer declared the book specialist in violation of the agreement.

Subsequent trips to the courts brought verdicts consistently in favour of Toys R Us, even after an appeal by Amazon, and the latest agreement to settle out of court with a US Securities and Exchange Commission filing.

Financial forecast hit

The hefty payment is sure to hurt Amazon's next quarterly financial report, with JPMorgan already forecasting an earnings drop from 28 cents per share (17 pence) to just 20 cents (12 pence).

Via NYT