Re: "in response to an expensive and lengthy court case"
they didn't lose.. they did not even get in front of a judge/court.... they can't afford to sue as they do not have the money to afford suing.
quote from their announcement:
so I reached out to the community at the time with a brief explanation of the problem to see if anyone knew of a trademark litigation attorney that would be interested in taking the case on a contingent fee basis. There were no replies, and our own lawyer's efforts at finding a trademark expert only resulted in finding someone who would analyze the case at a cost well above everything we had already spent: money we don't have, and money that could be better spent on development and research.
tl;dr version: "How much justice can you afford to buy?"