Did you even use the internet before the app store was open? app has always been used as short hand for application.
It's especially bogus a claim as Apple is not the first one to register a trademark with the words App and Store :
Typed Drawing
Word Mark APPSTORE
Goods and Services (ABANDONED) IC 042. US 100 101. G & S: providing computer software application hosting services by means of a global computer information network, where such services allow multiple users to rent software applications developed by applicant or third parties
Mark Drawing Code (1) TYPED DRAWING
Serial Number 75542841
Filing Date August 26, 1998
Current Filing Basis 1B
Original Filing Basis 1B
Published for Opposition February 29, 2000
Owner (APPLICANT) SAGE NETWORKS, INC. CORPORATION BY ASSIGNMENT DELAWARE 215 FIRST STREET CAMBRIDGE MASSACHUSETTS 02142
Assignment Recorded ASSIGNMENT RECORDED
Attorney of Record John P. Courtney
Type of Mark SERVICE MARK
Register PRINCIPAL
Live/Dead Indicator DEAD
Abandonment Date November 24, 2000
Notice the filling date...