Amazon and Apple settled their legal dispute over the term “app store” before the trial scheduled to begin next month.

U.S. District Judge Phyllis Hamilton dismissed the case in Oakland today at the request of both companies.

"We no longer see a need to pursue our case. With more than 900,000 apps and 50 billion downloads, customers know where they can purchase their favorite apps," Kristin Huguet of Apple told Reuters.

Apple launched its App Store in 2008 to sell apps for various Apple products. Amazon launched its Appstore for Android in March 2011. Apple sued, accusing Amazon of trademark violations and false advertising.

Amazon countered that “app store” is a generic term.

"Amazon's use is also likely to lessen the goodwill associated with Apple's App Store service and Apple products designed to utilize Apple's App Store service by associating Apple's App Store service with the inferior qualities of Amazon's service," Apple said in its lawsuit .

The dismissal allows both companies to use the term.

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