By Alexandra Burlacu | Nov 06, 2012 10:11 AM EST
Google's Motorola Mobility unit announced on Monday, Nov. 5, that a Wisconsin federal court has dismissed the lawsuit Apple brought against it.
The two companies were to square off in court over the trove of patents Google grabbed along with Motorola Mobility in its $12.5 billion acquisition back in May. Apple argued that Motorola's licensing practices were not fair.
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The trial was scheduled to start on Nov. 5 in Madison, Wisconsin, but Apple's unwillingness to commit to a patent royalty set by a federal court prompted a judge to dismiss the Cupertino giant's breach-of-contract claims against Motorola Mobility.
U.S. District Judge Barbara Crabb eventually canceled the trial over the fees Motorola Mobility could reasonably charge Apple for using patents related to industry-standard technology. The two companies failed to reach a middle ground, and Apple said it would not license the patents unless the judge set the fee at $1 or less for each iPhone.
Apple files suit last year, arguing that the license fee Motorola sought - 2.25 percent of the price of products that incorporate Motorola's patented technologies - was too high.
"We're pleased that the court has dismissed Apple's lawsuit with prejudice," Motorola boasted in a statement to AllThingsD.
"Motorola has long offered licensing to our extensive patent portfolio at a reasonable and non-discriminatory rate in line with industry standards. We remain interested in reaching an agreement with Apple," added the company.
An Apple representative declined to comment on the federal decision to toss out the trial, but the Cupertino giant is seeking to have the dismissal made "without prejudice," which would mean the matter could be disputed again later.
The lawsuit is one of many legal battles between Apple and Google, spanning several countries. This trial, however, may have been partly set to determine what might be considered fair, reasonable and non-discriminatory (FRAND) licensing terms by which Apple could license Motorola's industry-standard wireless patents.
Microsoft has a similar issue with Motorola, and the two companies are set to go before a Seattle federal court next week. Meanwhile, the U.S. Federal Trade Commission (FTC) is also reportedly weighing whether to sue Google over Motorola's handling of such patents.
In another high-profile battle in the industry, a San Jose, California-based jury ordered Samsung to pay more than $1 billion in damages to Apple over various patents related to its Android-based products. Samsung pledged to fight the ruling, as well as the injunctions against its products.
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