Apple Inc. has dropped a lawsuit against Amazon.com Inc. that claimed Amazon, in naming its marketplace for mobile apps “Appstore,” had infringed on Apple’s trademarked “App Store” name for the Apple  app marketplace.

Judge Phyllis Hamilton of the U.S. District Court in the Northern District of California says Apple on June 28 issued a “covenant” not to sue Amazon. She ordered the case terminated.

Apple filed suit in March 2011, claiming Amazon’s “Appstore” name would confuse customers.

Commenting on the end of the legal fight, Sucharita Mulpuru, vice president and principal analyst at Forrester Research Inc., says Apple needs to stay focused on its mobile devices and innovation.

“Apple’s got bigger fish to fry, and picking a fight when they need to be focused on product development was counterproductive,” Mulpuru says. “Amazon’s not Apple’s competitor these days—it’s Samsung and a whole bunch of others.”

Apple, No. 2 in the Internet Retailer Mobile 400, and Amazon, No. 1, did not reply to requests for comment.