Judge Orders Apple and Amazon to Negotiate Settlement in 'App Store' Lawsuit

Everyone loves apps. Free apps, paid apps, these seemingly bite-sized downloads bring tons of variety and capability to a smartphone, and nearly everyone uses the same word to describe them. But is the word "App Store" distinctive enough for Apple to hold exclusive rights to? That's what's currently being debated within the courts as Amazon tries to fend off Apple's trademark claims.

On Tuesday, Judge Elizabeth Laporte ordered the two companies to attempt to reach a settlement before the trial could begin. Apple and Amazon must now meet on March 21 in order to work through their dispute and see if the court date in August is necessary.

Apple sued Amazon in 2011, claiming that the term "Amazon Appstore" violated its trademark, competition laws, and qualified as false advertising. Amazon then countersued, asserting that Apple doesn't own exclusive rights to the term because it is generic. A similar battle is occurring in the European Union, where Microsoft, Nokia, Sony Ericsson, and HTC all joined Amazon in its claim that Apple's trademark is invalid.

One of Apple's claims has already been dismissed by courts in the United States. Apple's case was that since Amazon used the term "appstore" in its shop title, the company was falsely leading consumers to believe that it was somehow affiliated with Apple, but Amazon asked the court to reject the charge because the core of the case was simply trademark infringement. The judge agreed, ruling that there is "no evidence that a consumer who accesses the Amazon Appstore would expect that it would be identical to the Apple App Store particularly given that the Apple App Store sells apps solely for Apple devices, while the Amazon Appstore sells apps solely for Android and 8 Kindle devices."

Just because the two groups are scheduled to negotiate a settlement, however, doesn't mean that one will be agreed upon. While Apple successfully trademarked both "App Store" and "Appstore" in Europe, its application has not yet been approved in the U.S.

If no agreement is reached, the trial will continue as scheduled in August. 

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