Apple loses suit, Amazon can still use "AppStore" to describe storefront where you can download apps and E-books

(CBS) - Federal Judge Phyllis Hamilton denied Apple's request for Amazon to stop using the term "Appstore" to describe its digital downloads storefront, CNET reported.

"The court finds that Apple has not established a likelihood of success on its dilution claim. First, Apple has not established that its 'App Store' mark is famous, in the sense of being 'prominent' and 'renowned.' The evidence does show that Apple has spent a great deal of money on advertising and publicity, and has sold/provided/furnished a large number of apps from its AppStore, and the evidence also reflects actual recognition of the 'App Store' mark. However, there is also evidence that the term 'app store' is used by other companies as a descriptive term for a place to obtain software applications for mobile devices," according to the 18-page opinion filed yesterday.

Apple had filed the suit against Amazon in March when Amazon launched their AppStore where Google Android users can buy mobile applications.

In April, Amazon then countersued Apple on the grounds that the term "App Store" is too generic and that the case should be dismissed. Microsoft has also argued the same point believing Apple shouldn't own the term exclusively.

Although Apple has spent a fortune in marketing its App Store, the term is also used by other companies where people can get software applications for their mobile devices. "'App Store' is 'more descriptive than it is distinctive,'" Hamilton said.