The “I Kissed a Girl" hitmaker"s lawyers had asked Katie, who owns a lounge wear clothing label, to withdraw her trademark application to use Katy"s name for her label in May. However, the singer dropped the case just hours before it was set for court.
The designer said that she was keen to meet her namesake - whose real name is Kathryn Elizabeth Hudson - when she was in the country last week, but was refused.
"Katie wanted to meet Ms Hudson, let her know there's no hard feelings and give her a few of her garments to make peace and extend the proverbial olive branch," the Herald Sun quoted Katie Perry's agent, Nicholas Karandonis, as saying.
"But Ms Hudson, through her record company EMI, rejected the offer on the grounds she was pressed for time. She didn't even have the five minutes or so that would have seen them meet and exchange pleasantries," he added.
Karandonis said that the singer had set a bad example for her teenage fans by not meeting Katie Perry.