Amazon has been sued for "unlawful corporate bullying" and Intellectual Property infringement by case maker M-edge. According to
the filing, Amazon and M- Edge entered into a three year contract, which provided for commission at 15 percent for M- Edge on the sales. However, M- Edge is claiming that after mere two months of contract, Amazon pushed M- Edge to slash commission by thirty-two percent. The original contract was signed in November, 2009.
According to Wall Street Journal, Amazon also indulged in unethical corporate behavior as it threatened to undermine M- Edge's products on its website. M-Edge has accused Amazon of putting forth "increasingly outrageous demands". Amazon also constantly pressurized the company to redraw the contract. Consequently, both the companies signed a new contract in July, 2010. The new contract resulted in $6.5 million in fees and commissions to M-Edge.
M-Edge claims that Amazon's built-in light design for Kindle case infringes its patent. It has also accused Amazon of deliberately not including in the list of "Amazon Approved Accessory Vendors". Such exclusion lead to decreased sales volume for M-Edge. The lawsuit has been filed in Maryland court in the US. Amazon has refused to comment on the issue.