American Airlines has settled its trademark infringement with Google, ending a dispute over the search giant's use of the carrier's name to trigger paid ads.

Both sides agreed to pay their own legal fees, but declined to give details on the settlement, according to a Bloomberg report.

American Airlines had claimed that Google violated its trademark rights by allowing competing carriers to bid on keywords that contain its brand name even though the ads don't contain trademarked material.

Google has settled a number of U.S. lawsuits in this area, most notably with Geico Corp. in 2005. But the issue remains a major bone of contention between advertisers and the search giant.

According to Eric Goldman, a Santa Clara University School of Law professor, the settlement appears to be a win for Google and defeat for trademark diehards. However, the search giant still faces similar legal challenges to its keyword bidding procedures from foreign jurisdictions.