Apple drops 'app store' infringement suit against Amazon


Apple (NASDAQ:AAPL) is dropping a lawsuit alleging that Amazon's (NASDAQ:AMZN) Appstore for Android digital marketplace infringes its "App Store" trademark for iPhone and iPad software.

In March 2011, Apple filed suit against Amazon in an effort to block the digital commerce giant from using "app store" in relation to its Android application storefront, arguing that the Amazon Appstore for Android could mislead users looking for Apple's own App Store for iOS. A trial was slated for August, but Judge Phyllis Hamilton of the U.S. District Court in the Northern District of California has agreed to terminate the suit, stating that on June 28 Apple issued a "covenant" not to sue Amazon, effectively bringing the case to a close.

"Customers know where they can purchase their favorite apps," an Apple spokesperson told The Wall Street Journal, while an Amazon spokesperson said "We're gratified that the court has conclusively dismissed this case."

Apple introduced the App Store five years ago this week and now touts more than 850,000 iOS applications, including 350,000 native apps for the iPad tablet. Consumers have downloaded more than 50 billion apps from the store, and Apple has now paid out $10 billion in revenues to iOS developers and publishers. 

Amazon Appstore for Android went live in early 2011, launching in the U.S. and subsequently expanding to close to 200 international markets including Europe, Japan and China. The storefront promises a user experience rooted in Amazon's e-commerce and marketing expertise, highlighted by a series of automated marketing features extending the company's signature product recommendation engine to mobile software merchandising and a Bestsellers section to further improve consumer discovery.

For more:
- read this Wall Street Journal article

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