Language-software developer Rosetta Stone has agreed to dismiss the three-year-old trademark-infringement lawsuit against Google for the sale of its trademarks to competitors and counterfeiters for advertising.
Google and Rosetta Stone have further agreed to collaborate on combating online ads for fake goods and avert the misuse and exploitation of trademarks on the Internet by enhancing detection methods.
Google allows advertisers to purchase the rights to deploy certain words or phrases as keywords for paid ads on its site that would redirect users to websites of competitors and software counterfeiters.
The lawsuit was filed in 2009 with the US District Court in Alexandria, Virginia and the terms of the settlement have not been disclosed.
Both the firms said in a joint statement: "At the end of the day, both companies would rather cooperate than litigate, and we believe this agreement is an important step toward eliminating piracy and trademark abuse on the Internet."
Rosetta Stone claimed that those advertisers had created confusion among consumers and also alleged that few advertisers had sold fake Rosetta Stone products.