eToys and Etoy to settle cybersquatting row out-of-court

Online toy retailer, eToys, is initiating an end to legal proceedings against experimental art and entertainment organisation, Etoy, over cybersquatting allegations.

eToys caused an uproar in December when it sought and won an injunction against Etoy forcing it to suspend its Web site, despite the fact that the European art production site had been using the domain name since 1995 - two years before eToys was set up.

Since then Etoy has organised a campaign marshalling the support of the Web community resulting in eToys receiving hundreds of complaints. eToys said its decision to look for an amicable end to the dispute had been influenced by the views of the online community.

eToys initially claimed that Etoy didn't hold a trademark for the name and also accused it of exhibiting offensive and pornographic material.

Etoy claimed that the initial ruling represented the triumph of US corporate imperialism over freedom of expression and other cultures.

Now eToys says it has approached Etoy's legal counsel to try and agree an out-of-court settlement - it claims it wants the art of Etoy and the commerce of eToys to to co-exist peacefully on the Internet.