Google announced in a statement today that Wisconsin Judge Barbara Crabb has dismissed Apple's lawsuit against Motorola Mobility claiming the Google-owned Moto's practices related to standards-essential patent licensing were unfair.

The lawsuit was set to go to trial in US District Court in Madison, Wisconsin this afternoon but was, according to Google, dismissed with prejudice by Judge Crabb this morning. Readers may remember that a similar Apple vs Motorola trial was canceled in Illinois by Judge Richard Posner earlier this year.

For those just tuning in, the case was centered around the licensing of some of Motorola Mobility's patents (which Google bought along with the company in May). Apple complained that Moto was being unfair in its licensing of standard-essential wireless patents, and sought to settle the matter with a court order, which was fine with Motorola so long as Apple would also be held to the decision. Apple, however, said it would only agree to this if the court's determination were a maximum of $1.00 per iPhone to license the patents. Yes, one dollar. Motorola, meanwhile, was seeking up to 2.25% per device.

In reaction to today's dismissal, Google said the following:

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.

While the dismissal of this case is good news, it doesn't mean that the dispute is entirely over – Apple can still appeal the decision in Wisconsin, but since the suit was dismissed with prejudice, the Cupertino giant cannot pursue these same claims by re-filing in US District Court. There is little doubt that Apple will appeal the decision, and of course we'll keep you up to date as things progress. Until then, see the original story linked below.

Via Reuters