U.S. District Judge Phyllis Hamilton in Oakland, Calif., on Tuesday ordered that the case be dismissed at the companies' request. This came after Apple issued to Amazon a covenant not to sue, eliminating the need for a related Amazon counterclaim.
"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 in an interview, "This was a decision by Apple to unilaterally abandon the case, and leave Amazon free to use 'appstore."'
In its March 2011 trademark lawsuit, Apple had accused Amazon of misusing the "app store" name to solicit developers for a mobile software download service.
Amazon countered that the term had become so generic that its use could not be characterized as false advertising.
"We're gratified that the court has conclusively dismissed this case," Amazon spokeswoman Mary Osako said. "We look forward to continuing our focus on delivering the best possible appstore experience to customers and developers."
The case is Apple Inc. v. Amazon.com Inc. et al, U.S. District Court, Northern District of California, No. 11-01327.