"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.'"
"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."
In its lawsuit alleging trademark violations and false advertising, Apple accused Amazon of misusing the "app store" name in connection with the sales of apps for Android devices and the Kindle Fire, a tablet that competes with Apple's iPad.
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."