Apple Amazon App Store: Apple, Amazon, and the ‘App Store’ Drama

To put it mildly, Apple Inc. (NASDAQ:AAPL) does not like the fact that Amazon is using the term “app store.” In fact, the company is so upset that it hit the online retail giant with a trademark infringement suit.

Bloomberg is reporting that the two companies have been ordered to discuss a settlement, as opposed to continue to drag things out.

Here is a brief excerpt from the article:

“Apple Inc. (AAPL) and Amazon.com Inc. were ordered to hold settlement talks to try to resolve the iPhone maker’s trademark infringement suit over the online retailer’s use of the term app store.”

When the court speaks everybody must listen. And that is exactly what Apple Inc. (NASDAQ:AAPL) and Amazon are doing. U.S. Magistrate Judge Elizabeth Laporte is in charge of the case, and she has requested representation for both sides to get together on March 21.

Even though a trial is scheduled for August, it is easy to see that Laporte is not interested in letting things drag out that long. If at all possible, she would like both sides to settle in March. The Bloomberg article adds:

“U.S. Magistrate Judge Elizabeth Laporte in San Francisco directed the companies to confer on March 21 and to bring their lead attorneys and people who have full authority to negotiate and settle the case, according to a court filing today. A trial is scheduled for August.”

In other words, she wants both parties to be fully prepared to move forward with negotiations.

Even if you don’t know the full background surrounding the case, it is easy to see that there is bad blood between the two companies regarding the use of the term “app store.”

Here is the basic argument for both sides, in generic terms:

– Apple Inc. (NASDAQ:AAPL) is seeking a court order to block Amazon from using the term because the company opened its app store in 2008 (before Amazon)

– Amazon, on the other hand, is arguing that the term is generic and it is not infringing on Apple’s trademark despite starting its service three years later

For more background information on the fight, here is an excerpt from an AppleInsider article:

“Apple first filed suit against Amazon in 2011, asserting that Amazon has violated the “App Store” trademark for which Apple has applied. Other major technology companies, such as Microsoft, have sought to block Apple’s application with the U.S. Patent and Trademark Office.”

“Amazon countered last September by arguing that the “app store” moniker has become generic, allowing it to use the name “Amazon Appstore” for its own digital download service. Apple has used the name App Store since its iOS storefront opened in 2008.”

Who are you siding with on this one? Do you think Apple Inc. (NASDAQ:AAPL) is going overboard, or do they have a legitimate case?

If settlement talks break down in March, an August trial awaits.

Check back here for more updates on Apple Amazon App Store.

DISCLOSURE: I have no positions in any stock mentioned.

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