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Popular online retailer Amazon.com has found its self on the losing end of a lawsuit brought by Basis Technology concerning the establishment of Amazon's Japan subsidiary and its Japanese ecommerce site Amazon.co.jp.

The Appeals Court of Massachusetts ordered Amazon to pay Basis technology for its role in the development of Amazon Japan and allowed Basis Technology to resume its use of the Amazon name and logo in its promotional materials. Amazon is required to give up its seat on the board of directors of Basis Technology and also relinquish all rights as a preferred shareholder.

Basis Technology originally brought the suit against Amazon wanting compensation for the key management and technology consulting services Basis Technology provided in the development of the online retailers successful Japanese operation. The parties reached a settlement agreement but Amazon later tried to renege on that settlement, the judge upheld the agreement and ruled in favor of Basis Technology.

"We're pleased the court saw things our way," said Carl Hoffman, CEO of Basis Technology.

"We're proud of the strategic management and technology consulting services we offer to American firms to drive their businesses in Asia, are happy those services contributed to Amazon.com's success in Japan, and are now even happier to be compensated properly."