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Apple, Amazon reach an agreement on app store

Apple and Amazon had been embroiled in a legal battle over the misusing of the app store name.

Amazon.com

REUTERS - Apple Inc. and Amazon.com Inc. have ended their lawsuit over who has the right to use the "app store" name, clearing the way for both companies to use it.

US District Judge Phyllis Hamilton in Oakland, California, on Tuesday ordered that the case be dismissed at the companies' request, averting a trial that had been scheduled for August 19.

This came after Apple issued to Amazon a covenant not to sue over the online retailer's use of the term, eliminating the need for Amazon to pursue a counterclaim seeking permission.

Apple began selling applications for mobile devices via its App Store service in July 2008. Amazon launched Amazon Appstore for Android in March 2011. Apple began the lawsuit that month.

"We no longer see a need to pursue our case," Apple spokeswoman Kristin Huguet said. "With more than 900,000 apps and 50 billion downloads, customers know where they can purchase their favorite apps."

Martin Glick, a lawyer for Amazon, said, "This was a decision by Apple to unilaterally abandon the case, and leave Amazon free to use 'appstore.'"

Amazon countered that the term "app store" had become so generic that using it would not mislead customers.

It said in a court filing that even Apple Chief Executive Tim Cook had used the term generically, in discussing "the number of app stores out there," while his predecessor Steve Jobs had talked about the "four app stores on Android."

Hamilton dismissed Apple's false advertising claim in January.