Next Jump Inc has agreed not to contact Borders Group Inc's customers or operate its website, resolving Borders' bid for an injunction over trademark infringement allegations against the marketing engine.
The parties reached an agreement in U.S. Bankruptcy Court in Manhattan Tuesday. Borders will move forward with claims for damages.
Borders, the bankrupt bookseller in the midst of winding down its operations, had sued Next Jump last week, saying it was contacting Borders' customers in an attempt to steal them.
Next Jump, hired by Borders to operate its Bordersrewardsperks.com website, used its access to Borders' customer lists to try and redirect them to its own site, OO.com, the lawsuit said.
Next Jump agreed to take the Borders site down, and to remove any references to Borders' trademarks on its own sites. It has also agreed to purge Borders' customer lists from its systems by Friday.
Next Jump has denied the allegations, saying it had an agreement with Borders to move its accounts to OO.com.
The case comes at a critical moment for Borders, which wants to maintain as high a value as possible for its trademarks, customer lists and other intellectual property it plans to sell to the highest bidder.
Potential buyers have until Thursday to offer bids for the assets.
Borders filed for bankruptcy in February after being unable to withstand the growing popularity of online booksellers and e-readers like Amazon.com Inc's Kindle and Barnes & Noble Inc's Nook. The company began liquidating in July after failing to find a buyer.
The bankruptcy case is In re Borders Group Inc, U.S. Bankruptcy Court, Southern District of New York, No. 11-10614. The lawsuit is Borders Inc et al v. Next Jump Inc in the same court, No. 11-ap-02567.
(Editing by Bernard Orr)