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Microsoft Faces U.S. Import Ban on Xbox 360

"WASHINGTON (CN) - The International Trade Commission should ban import of some Microsoft Xbox gaming consoles into the United States because they infringe on Motorola patents, an administrative law judge said.
The recommendation is limited to the 4GB and 250GB versions of the Xbox 360 S console.
Judge David Shaw also recommended that the commission prevent sale of the consoles with a cease-and-desist order, and that Microsoft post a bond equal to 7 percent of the declared value of unsold Xbox inventory already in the country."

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Dante1121976d ago (Edited 1976d ago )

Funny bit

"Microsoft argued that Shaw's exclusion order does not serve the public interest because it would leave consumers of video game consoles with only two options to satisfy their needs: the Sony Playstation and the Nintendo Wii.
Shaw rejected that argument, finding that the public interest in enforcing intellectual property rights outweighs any potential economic impact on video game consol buyers."

Don't worry though, MS will pay the 4 billion before they let Motorola (or should I say Google since they just finalize the buy today) stop shipments.

darthv721976d ago

but what I dont understand is why it took so long to even get to this point. Meaning that when ANY device is released to market. Obviously you have the microscope out to look for any and all types of patent infringement issues.

360 was released in 2005 and it was in 2010 that this really started to hit the fan. 5 years worth of sales and (to our knowledge) no word on this company or that company filing suits about patents.

MS is a software company who hold many patents to how software works for certain applications. Motorola is a hardware company that holds many patents to how certain hardware operates with certain software applications.

They have worked together before but now it seems there is a higher power at work here.

hazelamy1976d ago

but the patent only seems to apply to the xbox S.
maybe the orignial 360 didn't have whatever this patent suit is about.

Wolfbiker1976d ago

I believe only S models are being disputed.

darthv721976d ago

I still dont understand how the changes to the S constitute patent issues. It is a redesigned 360. For all we know they are using the same wifi chipset internally that they had for the external adapters.

Not much changed in the S as far as functionality and software from the original. So why now? Why this model? Perhaps between the time the original and the S there were some changing of the license agreements between Moto, MS and 3rd parties.

All of these companies license ideas from each other but it is when one gets really successful that the others cry foul as they want a bigger percentage of the take.

That doesn't seem right but it happens.

Dlacy13g1975d ago

@darthv72 this is almost assuredly about the wifi built into the new S configuration. Prior to the S wifi wasn't included its really the only part of the new S configuration that would seem likely to have some kind of Motorola tie in.

zeal0us1974d ago (Edited 1974d ago )

"They have worked together before but now it seems there is a higher power at work here."

Its all about MONEY.

M$ gets paid for every android handset is sold. Anyone that sells an android handset has to pay M$ or face going to court with them due to some patents. Guess who makes android handsets? That's right Motorola

Guess Motorola probably said two can play that kind of game. Now they probably will offer M$ an option of paying them for each 360 S is sold in the near future if this ban is passed.

+ Show (2) more repliesLast reply 1974d ago
Akuma-1975d ago

People still play on xbox 360. I thought people only payed xbl so they could talk and play older games

Emilio_Estevez1976d ago (Edited 1976d ago )

That is real bad news, but as with any court case, resolution will probably still take forever.

LOL, that is funny Dante, how conceited are those guys? OMG, teh public will only have 2 choices, instead of 3, what will they do? Not to mention PC

Dante1121976d ago

Word. They didn't feel that way when analysts were saying that the PS3 was doomed in 2007 ("Gaming will still continue without them"). I wonder if Motorola will ban the 360 immediately to put pressure back on Microsoft.

Draperc1976d ago

Wait, does this mean a few months from now I won't find a 4gb or 250 gb Xbox 360 in stores? I don't know jack when it comes to patents and copyright laws and such and I'm not gonna pretend I do either, can someone explain to me what this means for Xbox 360s here in the states?

metsgaming1976d ago

right now it doesnt seem to mean anything but they could ban xboxs made in china from reaching the US. If Ms believed that this could happen they would just be flooding them in before it takes effect. Lets say it does happen they would challenge it and while that challenge is happening i feel they would be allowed to keep importing while that takes place. I doubt anything will happen, they would probably settle if they think they were in deep trouble.

RedDragan1975d ago

If they challenge, pay the money to ordered to resume during a challenge, and are then found to still be in the wrong it would cost Microsoft a heck of a lot more than the 7% they need to post to keep on trading.

The money needed to be posted to continue during a challenge is just a deterent, it is the punishment afterwards if the challenge fails that is the real hard hitter.

Hicken1976d ago

It means that, depending on how long it takes the ban to be enacted(a few months or next week or whenever), there won't be any 360s on shelves, and you may not even be able to buy them from another country and import them.

Microsoft would also have to pay lots of money on the systems already here.

To be honest, this is looking bad. It's not the first court to agree that Microsoft is infringing upon Motorola patents. And with that money having to go to Google(owner of Motorola and a competitor), it could have an impact on the company's value, as well.

Draperc1976d ago

Well that bites, I was thinking of getting one for a friend's birthday. Sure hope they settle this somehow so they can keep selling them here.

KMCROC541975d ago

wonder if MS is looking to see how many patents MOTO is infringing on ,cause i can bet they are infringing on some of MS patents. like everyone has stated MS is a software maker , while MOTO makes hardware so am guessing that hardware need some software.

Hicken1975d ago

If you're planning to get one, I would suggest doing so very soon.

Draperc1975d ago

I might do that, was thinking on waiting until sometime next month so I'd have enough to get the 250 gig version, a few games, xbl gold membership and an extra controller, but by then the ban may be passed. I may just get only 1 or 2 games to go with it and he can get the xbl gold membership and extra controller at a later date.

NYC_Gamer1976d ago

MS will break out the check book soon enough

Magnus1976d ago

I wonder how much this will cost MS in the long run.

LOGICWINS1976d ago

*places pinky on lips*

One...BILLION DOLLARS!

Jihaad_cpt1976d ago

lol, made me laugh. No bubbles left but was worth it

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