The 25-year-old "Go Hard Or Go Home" hitmaker had alleged in September last year that Williams downloaded songs off her personal computer when the pair dated between 2008 and 2009 and released them in August without consent, reported Entertainment Weekly.
"Defendants have defied Azalea's demands that they refrain from wrongfully exploiting her name, likeness and copyrighted music by distributing her music without her consent and by using her trademarked name and her likeness to promote themselves and the music they misappropriated," the original complaint read.
Azalea, whose real name is Amethyst Kelly, had initially sought damages for the same.