MS rejects Motorola settlement, US ban could go into effect

[garyopa]

Refuses suggested royalty of 2.25 per cent on each Xbox sold.



Microsoft has turned down a settlement offer by Motorola Mobility which could ultimately outlaw sales of some Xbox consoles in the US.

Seems that Microsoft rejected a settlement with Motorola over the ActiveSync patent dispute used in 4GB and 250GB Xbox 360 Slim consoles, Windows 7, Internet Explorer and Windows Media Player.

Apparently, Motorola Mobility has asked for a royalty of 2.25 per cent on each Xbox sale, and $0.50 per copy of Windows, that use its patented technology.

In April, Judge David Shaw said Microsoft should be handed a cease-and-desist order on sales of Xbox 360 Slim consoles across America unless the dispute was settled. He claimed that Microsoft should also be banned from importing the console from China, and pay Motorola Mobility 7 per cent of the value of any unsold systems remaining in US stores.

The ITC commissioners can either allow the initial determination stand, or amend certain terms, or send it back for a rewrite. If Shaw's recommendation is enacted, President Barack Obama will have 60 days to review the decision.

After that period expires, the next step is the Court of Appeals for the Federal Circuit.

Microsoft said that Motorola Mobility breached contract by demanding "unreasonable licensing fees" for use of the patents. They argued that it would have needed to spend some $4 billion each year to cover licensing costs.

So, 'MS products being banned in the US' is something that doesn't sound as crazy as one might have thought.

That's right the "nasty battle for patent control" continues...

NEWS SOURCE: Xbox 360 Ban Microsoft rejects Motorola settlement (via) CVG

Our thanks to 'Gauss' for this news item!

[Signa]

I can't say this is good or bad, but just plain stupid.

[Diztructor]

its like playground fightin
ohh if you hit me my brother will hit you
if your brother hits me my dad will hit him
ohh my dads harder than yours

i think they should accept the fact that if someone owns the rights to something then MS should pay, motorola will cost MS money if they get the product banned.

[wren210]

to be honest microsoft is getting from 2 to 8% for every android phone sold depending on the price, and now they have
infringed someone else's patents & the roles have reversed they dont like it MAN UP BITCHES, although motorolla probably are using the same
tactics microsoft used when they got payments from the android phone manufacturers


p.s. i have used microsoft products all my life and have an 360 elite

[MadonnaProject]

come on MS pay up. you can afford it. Although 2-3 cents on every xbox sold so far does add to quite a lot.

[billysastard]

its like playground fightin
ohh if you hit me my brother will hit you
if your brother hits me my dad will hit him
ohh my dads harder than yours

i think they should accept the fact that if someone owns the rights to something then MS should pay, motorola will cost MS money if they get the product banned.

maybe not, many of the larger companies often drag these things through the courts for years, if ms are rejecting the current deal i think you can be assured they think they can drag this on without a ban at least until they can launch a non infringing work around or until they launch new hardware (with modified codecs), remember that ms are large enough to push many current media companies to a new codec of their design which would result in long term losses to motorola as their codecs stopped being used in anything.

[IJTF_Cinder]

Yeah they have huge teams of lawyers, I'm sure they've thought this one out and realize they can hold things up long enough that the 360 will be off store shelves and long out of production before a ban could actually be enforced.

After what's gone on between these two, I'd actually put my money on Motorola winding up being BOUGHT by Microsoft sometime down the road. They aren't the huge company they were 15~ years ago.

[msanchez]

ms are not that stupid, if they aren't settling then as billy said they have something up their sleeve (revised hardware/brand new hardware). In the end, I think they would lose less money like this than if they made a deal and not charge whatever % it is they get paid for the sale of each moto android phone (worst android phones in my opinion by the way). The 360 is on it's way out, now that google purchased motorola mobile, it's certain they will keep selling android phones for some time.

...After what's gone on between these two, I'd actually put my money on Motorola winding up being BOUGHT by Microsoft sometime down the road. They aren't the huge company they were 15~ years ago.

Unlikely to happen, as I said, google purchased Motorola's Mobile division, so the side of the company that is having issues with ms is owned by google.