Apple's patent dispute with Google's Motorola Mobility unit is possibly heading towards a negotiation; with Apple having filed its response in connection with the dismissal of its FRAND lawsuit against Motorola Mobility, at the US District Court in the Western District of Wisconsin on Friday.

In its filing, Apple said that it has been exchanging proposals with Motorola Mobility on working out a binding arbitration which would result in a licensing deal between the two companies, over patents which are essential for compliance with industry standards the mechanism behind the functioning of phones.

In case Apple and Motorola Mobility are able to reach a licensing agreement over their in-dispute patents, the settlement of all of their patent lawsuits worldwide will apparently become possible.

With Motorola Mobility having first raised the arbitration issue on November 5 - the day Judge Barbara B. Crabb canceled the trial and dismissed the case "with prejudice" -, Apple said in its recent filing that the arbitration proposal will be considered by the company if the court neither dismisses Apple's claims nor the patent lawsuit in general.

Apple said in its filing that it is "also interested in resolving its dispute with Motorola completely," and added that it acknowledges the fact that "arbitration may be the best vehicle to resolve the parties' dispute."