It certainly seems as if he did just that. You can split hairs over what constitutes "dropping" vs. "settlement" or whatever.It still falls within the realm of a surprise upset victory for Axanar. Even if Axanar is incapable of finishing the project for one reason or another, it can now claim it martyred itself for fan-filmdom.
It's not splitting hairs. There's a big difference between dropping a case, thus letting everyone go back to what they were doing before, infringements and all, and in settling a case with restrictions and changes, agreed to, enforced, if not exactly loved. The latter is happening here. But you
are right in that this is a victory for Axanar. CBS was prepared to go all the way to trial, one it read to me like they'd win. JJ did what Axanar couldn't do with their MTD: remove much of CBS' leverage. Alec will be able to spin this as a heroic victory.
And hey, if that's the case, great! This problem never would have come to a head if not for CBS/P being unwilling to really engage the fan-film community directly, because of their fear-based approach to protecting their copyright.
I really disagree with this assessment. CBS pretty much let every fan film do what they wanted. They tweaked instead of crushed. And legally, they didn't want the headache of issuing and maintaining licenses. Don't forget, fan films are a narrow slice of the community. Both trailers for the new series and new films have gotten more hits in a day than Axanar has had in watches in its life.
But IP issues are important. I'm biased here because I produce creative IP and I've seen a lot of it ripped, pirated, and spread. And I'm a tiny little indie writer / producer with no great fame or influence. Most of the the "copyright doesn't matter" arguments I've encountered are from people who think it's about taking some money from giant corporations, not realizing the numerous small-time folks that get creamed in the process.
My personal interest here is in seeing IP defended. I'm a miffed that Abrams doesn't seem to care as much or that his calculus is different than mine. When you are worth hundreds or millions and responsible for billion-dollar tentpoles at multiple studios, I can see that you might not care as much if a small fan film infringes. Most of us don't breathe that air and never will. Backing off of this like it looks like they're doing? I think it just makes it more difficult for the rest of us.
While those with the gold don't necessarily make the rules, the more gold they have, the more they get to jack those rules in their interests.