Google has moved to drop two patent infringement claims made against Microsoft related to video compression and wi-fi technology used in the Xbox 360.
The patents in question were developed by Google subsidiary Motorola Mobility, which previously sought a ban on the sale of several Microsoft products for allegedly infringing on its innovations.
In May 2012 Google won an injunction against Microsoft in Germany, allowing it to impose a sales ban on Xbox 360, Windows 7 system software, Internet Explorer and Windows Media Player. However, this was later blocked by a US appeals court.
In a separate but related, ongoing dispute in a US court, Google and Microsoft are trying to determine suitable royalty rates for the use of the patents, which the Xbox maker wants to licence.
Google is seeking a fee of $4bn (£2.5bn) annually, but Microsoft insists the patents are only worth a quarter of that sum because they're essential to the tech industry as a whole and should therefore be licensed on reasonable and non-discriminatory terms.