Thursday, September 27, 2012

Apple Inc. (NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN) fight over the “App Store”

Amazon.com, Inc. (NASDAQ:AMZN) had first filed a trademark lawsuit against Apple Inc.(NASDAQ:AAPL), over the fact that the latter was using the term “app store” to rope in developers for mobile software download services. Apple has, as of this year, become the biggest company around, in terms of market value, and its phenomenal growth and popularity has drawn many customers to it.

Apple added a trademark claim last year, stating that Amazon was using their “app store” name, by referring to their own application download software as “Amazon Appstore”, instead of specifying the fact that the application software was for Androids. This claim came right after Amazon Launched their Kindle Fire tablet.

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To this, Amazon retaliated by stating on Wednesday, at a U.S District Court hearing in Oakland, California, that the term “app store” has become a generic one, and that it does not just bring to mind, the Apple brand name. In order to stress their point further, Amazon added that even Steve Jobs, and the current Chief Executive Tim Cook, have used the term as a generic one, while talking about “app stores” by different companies, and that the term has now come to denote companies selling applications.  The company has gone all out, to cite the statements made by the CEOs while referring to app stores, and they have said that Apple would need to admit that their CEOs had indeed, made false statement, if they wanted to carry forward the trademark claim.

This seems to have thrown Apple off-balance, as Kristin Huguet, a spokeswoman from Apple refused to comment on the claims by Amazon. The hearing for Amazon will be held on the 31st of October this year, while the trials have been pushed forward to the 19th of August in the next year.

Apple’s growing popularity is not without its downfalls, due to the iconic image-building, as its success, the Apple-centric terms are getting mixed up. Apple, on its part, though, is trying to protect its image and its special features as well as marketing strategies. It is obvious why the company would not want to share its terminologies with any other country, thereby making the term less iconic.

Shares of AMZN are up 3% to $256.82 and AAPL rose 2.23% to $680.

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