[Osirian08]

Story courtesy of MCV :-

Judge recommends Xbox 360 ban in US | Games industry news | MCV

Microsoft’s patent dispute with Motorola just got significantly more serious with the threat of a US ban on the console.

The legal tussle between the pair saw the Xbox 360 console blocked from distribution in Germany earlier this month.

Now Judge David Shaw of the International Trade Commission has recommended that the machine should no longer be imported into the US and all sales of unsold stock to be blocked.

In addition, Shaw thinks Microsoft should be a levy of seven per cent of the value of each unsold console remaining in the country.

"Enforcing intellectual property rights outweighs any potential economic impact on video game console buyers," he added.

Microsoft then argued that such a move would be unfair as it would limit the options available to the consumer, though Shaw argued that Sony and Nintendo could handle any extra demand.

If the ITC commissioners agree with Shaw then the recommendation will be presented to none other than US President Barack Obama, who (along with a small army of advisors) will have the final say

[majnu]

ITC Judge recommends a limited exclusion order be issued on the Xbox 360 console.


Zoom

Microsoft was today dealt a massive blow in its patent suit against Motorola as a U.S. judge recommended that the company's popular Xbox 360 console be banned from the United States. The suggestion comes following the discovery that Microsoft's Xbox controllers infringe upon several Motorola-owned patents relating to wireless technology.

The news follows on the heels of an April ruling that found Microsoft guilty of infringing upon a total of four Motorola patents. However, Courthouse News Service reports that an International Trade Commission judge just recently ruled that Microsoft's Xbox should face a U.S. import ban as a result of the patent infringement. According to the court document, which was released on Monday, Microsoft argued that such a ban would not be in the public interest as customers would be left with only the PlayStation 3 and Wii as alternatives. However, Judge David Shaw disagreed. Shaw claimed there was no indication that Sony and Nintendo would be unable to meet consumer demand and highlighted the importance of enforcing intellectual property rights.

"[...] it has not been alleged or shown that Sony or Nintendo would fail to meet the demand for consumer video gaming consoles in the event that an exclusion order issue," Judge Shaw said. "Moreover, there is a strong public interest in enforcing intellectual property rights; not enforcing those rights in light of a potential economic impact occurs only in exceptional circumstances."

In addition to the limited exclusion order covering the 4GB and 250GB versions of the Xbox 360, Shaw is also recommending a cease and desist order for unsold inventory as well as a bond payable to Motorola to the tune of seven percent of the wholesale price of the Xboxes Microsoft still has in inventory. Motorola had been pushing for that bond to be set at 100 percent of the price, while Microsoft claimed that it should be set at zero, because there's no evidence to show customers purchased an Xbox in lieu of a Motorola Droid or set-top box. Alternatively, Redmond says it should be capped on reasonable and non-discriminatory (RAND) terms. Shaw settled on seven percent in his recommendation.

So, what happens now? Will the Xbox be banned? Right now, we don't know. Wired reports that Shaw's ruling is now going to be sent to the ITC's six-member board of commissioners for review. The deadline for changes to the ruling (or throwing it out completely) is set at August 23. If the board agrees with Shaw, the decision will then be passed on to the Obama Administration, which will have its own 60-day review period. During this period, it will be up to President Obama to either sign-off or overturn the commission's decision.

Xbox 360 Could be Banned for Motorola Patent Infringement

Good I hope it gets banned world wide for them not returning my points after my account got hacked.

Love you Motorola

[Guns_LotsOfGuns]

Originally Posted by majnu

Good I hope it gets banned world wide for them not returning my points after my account got hacked.

Love you Motorola

Seems a bit extreme

Surely worst comes to the worst and Microsoft just pull out some cash from the war chest and make Motorola go away.

[majnu]

Or everyone will use the USB controller

[Crovon]

I honestly dont understand how these things are allowed to happen?

Surely MS' people cant be that stupid as to breech patents, etc?

Sounds like MS are willing to fight their corner on this rather than settle out of court, which could go either way.

[brumhee]

Originally Posted by majnu

Or everyone will use the USB controller

Its not really anything to do with the controller.

Its a FRAND dispute on the H.264 processing Microsoft use in the Xbox.

Motorola hold the patent but under FRAND have to license it at a reasonable rate. Motorola claim this to be 2.25% of each console sold (microsoft estimates this to be around $4,000,000,000 annually). Microsoft are saying this % is not in keeping with FRAND.

[kscottsafc]

Originally Posted by brumhee

Its not really anything to do with the controller.

Its a FRAND dispute on the H.264 processing Microsoft use in the Xbox.

Motorola hold the patent but under FRAND have to license it at a reasonable rate. Motorola claim this to be 2.25% of each console sold (microsoft estimates this to be around $4,000,000,000 annually). Microsoft are saying this % is not in keeping with FRAND.

So are MS saying that their annual xbox sales are around $200 billion a year or is that amount to cover the whole of the time from launch to now?

[brumhee]

I assume so only going off the reports on tinternet

http://m.digitaltrends.com/mobile/mo...ox-360-in-u-s/

[noisecrime]

Originally Posted by brumhee

Its not really anything to do with the controller.

Its a FRAND dispute on the H.264 processing Microsoft use in the Xbox.

Motorola hold the patent but under FRAND have to license it at a reasonable rate. Motorola claim this to be 2.25% of each console sold (microsoft estimates this to be around $4,000,000,000 annually). Microsoft are saying this % is not in keeping with FRAND.

Odd that its a percentage and quite a high one at that. Percentage will adversely hurt the more expensive cutting edge technology/hardware which clearly h.264 support has minimal actual impact on. I mean whilst H.264 might be an important part of a product it does not make up any of the manufacturing cost of that product (the hardware), so why should they get a percentage of the unit price?

I also seem to remember reading somewhere that the average mobile phone contained hundreds of patents. If thats true and they all asked for a percentage of unit sold, how can the original manufacture ever make a profit?

If they all asked for a percentage, even just 1%, a hundred patents would wipe out the sale price. The only way it could work is if its based on manufactured price, with the company able to add additional cost to cover the patent charges.

No wonder electronic goods cost so much these days

[brumhee]

I think that's why Microsoft are arguing the % Motorola wants is to high they are happy to pay just not that amount

[kopchoir]

Isnt this going to the White House for final decision???
Does anyone actually think that a President will Ban an Xbox 360 in his own country?? The economic climate says it wont happen,and the number of voters at that core voting age how many will say ta ra Obama Millions.

Never going to happen.......also havent Google bought Motorola???

[majnu]

Originally Posted by brumhee

Its not really anything to do with the controller.

Its a FRAND dispute on the H.264 processing Microsoft use in the Xbox.

Motorola hold the patent but under FRAND have to license it at a reasonable rate. Motorola claim this to be 2.25% of each console sold (microsoft estimates this to be around $4,000,000,000 annually). Microsoft are saying this % is not in keeping with FRAND.

Well in that case I hope Moto bleeds them dry. I'd still love it was banned but since money makes the world go round I guess Moto will settle on a payout from MS

[Crovon]

Originally Posted by majnu

Well in that case I hope Moto bleeds them dry. I'd still love it was banned but since money makes the world go round I guess Moto will settle on a payout from MS

Why on earth would you want it to be banned?

[DJSigma]

His gamertag got hacked and he lost some MS points, so I guess he feels that an appropriate punishment for that is Microsoft paying $4 billion in fees or having their business harmed to the tune of several billion, haha.

The fee that Motorola (or Google, more accurately I guess, now that they own them) are demanding is ridiculous. MS pay $6.5 million a year to the companies that own over 2,000 patents on H.264, which is a capped figure, but even uncapped it would be about $60 million. Motorola want $4 billion for the 50 or so patents that they own?? Not just that, but they are fighting to block the sale of products (and not just Microsoft's) that will do harm to competing businesses. That's not "fair, reasonable and non-discriminatory".

[Rorifett]

Although it looks like ms is hitting back with forcing Google/Motorola to stop using the SMS messaging service over 160 characters which would be a disaster according to some sources, can't mind where I read that but one of the news sites had something on it recently

Edit - was on BBC news app

[brumhee]

No idea link is broke and looks like you're trying to hot link as well which isn't allowed.

[Rorifett]

Which link?

[Scholes18]

Originally Posted by Crovon

Why on earth would you want it to be banned?

Because he's a buffoon

[majnu]

Originally Posted by Scholes18

Because he's a buffoon

According to atheists and Darwinist's Human's descended from Ape like Buffoons. Since I am not a believer in of them and the chances are you are I think the probability is that you're most likely like one.

[Scholes18]

Darwin > creationism

[majnu]

Originally Posted by Scholes18

Darwin > creationism

So you admit you were an ape then, thanks

[Scholes18]

Originally Posted by majnu

So you admit you were an ape then, thanks

Troll Halfwit.. I'm ashamed you're from manc. Please leave .


Roll on 515

[majnu]

Originally Posted by Scholes18

Troll Halfwit.. I'm ashamed you're from manc. Please leave .


Roll on 515

Whatever floats your boat, I'll leave you to monkey around on your own.

[Scholes18]

Oh thats a good one...

BTTT

It'll get settled. Just matter of cash

[fliegenaffe]

Microsoft will just say "here you go Motorola,here's a big sack of cash,now please go away and play nicely"

[brumhee]

Originally Posted by Rorifett

Which link?

Someone posted a hot linked image, guess a mod deleted the post and now I look a fool!