Hilary Swank -- Drops Gloves in Legal Fight Over 'Million Dollar Baby' Face

Hilary Swank decided to bow out early in her legal battle against an electronics company in California ... dropping the lawsuit she had filed against them for using her pretty mug without permission.

If you recall, Swank filed a suit against Robert's Home Audio and Video in May, alleging they illegally used an image of her from the film "Million Dollar Baby" on their company website, without consent.

The Oscar winner has since filed legal docs in L.A. Superior Court, asking a judge to drop the case. The case was officially dismissed on July 19.

Robert Yates -- the lawyer for the home and audio co -- tells TMZ ... he believes the actress scrapped the suit because her case was weak to begin with and it just wasn't worth the effort, adding "It's a lot of bother for very little potential benefit."