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AT&T has realized that sometimes it’s better to laugh along when someone pokes fun at you.

The phone giant today abandoned its quest to muzzle rival cellphone provider Verizon Wireless’ batch of ads that poke fun at AT&T by asserting its 3G cellular network isn’t as expansive as Verizon’s.

The decision to give up the fight came after a federal judge last month rejected AT&T’s request for an order pulling the ads, which feature maps illustrating that Verizon’s 3G network covers more of the US than AT&T’s.

In one Verizon ad, an iPhone-looking device is featured in a spoof of the “Island of Misfit Toys,” while others riff on Apple’s “There’s an app for that” campaign for the iPhone with the tagline “There’s a map for that.”

AT&T has since unveiled a counter-campaign starring actor Luke Wilson.

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