Internet search giant Google has dropped patent infringement complaints that it filed against Microsoft.
The firm ended its patent war with Microsoft over video compression technology used in the Xbox 360.
Google had also argued that Microsoft was using its wi-fi innovations.
Google has now asked the US International Trade Commission, which handles patent disputes, to withdraw both claims, the BBC reports.
It had previously said in court that Microsoft should pay up to four billion dollars a year to use its connectivity and video coding patents.
Microsoft had argued that the patents, which belong to the Motorola Mobility Unit owned by Google, were only worth about on million dollars per year to use because the technology they related to is so essential to the tech industry as a whole.
According to the report, Google countered that the two firms should have tried to negotiate a deal based on the starting point of a 2.25 percent royalty demand, which it described as "the only logical starting point" since it had agreed other licences on this basis. (ANI)