[UPDATE] Microsoft (Xbox) vs Motorola

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Original Post

Xbox patent ruling favours Motorola over Microsoft



Microsoft has suffered a setback in a patent row over technologies used by its Xbox 360 games console.
A judge at the US International Trade Commission has ruled that the firm infringed four patents owned by Motorola Mobility.
The full commission will review the judgement in August.
If the final ruling goes against Microsoft and it does not settle, Motorola could theoretically force it to halt imports of the Xbox to the US.
The claims relate to technologies involved in the H.264 video compression standard and wi-fi connectivity.

Licensing fees

This is just one of several cases involving about 50 intellectual properties that the smartphone maker says Microsoft should have licensed.
Microsoft has said that if it met all of Motorola's demands it would face an annual bill of $4bn (£2.5bn).
Motorola - which is in the process of being taken over by Google - disputes the figure.
A spokesman for Motorola said: "Microsoft continues to infringe Motorola Mobility's patent portfolio, and we remain confident in our position."
However, Microsoft signalled it planned to fight on, saying: "We remain confident the commission will ultimately rule in Microsoft's favour."

'Essential' innovations

Patent consultant Florian Mueller, who advises Microsoft, noted on his blog that three of the four disputed patents involved Frand-type technologies.
These are inventions recognised as being essential to an industry standard. In other words, Microsoft could not offer wi-fi or the ability to play H.264 videos without using them.
Such patents must be offered under "fair, reasonable and non-discriminatory terms".
At the start of April, the European Commission said that it had launched two investigations into whether Motorola's efforts to enforce its Frand-type innovations amounted to "an abuse of a dominant market position".

German ban

The next significant ruling involving the two firms is due on 2 May from a court in Mannheim, Germany.
It will decide whether Motorola should be allowed to order a ban on the distribution of Windows 7, Windows Media Payer and the Xbox console in the country because of the H.264 patents dispute.
Microsoft has already moved its European software distribution centre from Germany to the Netherlands to minimise potential disruption.
However, a US court has ruled that Motorola must not enforce such a ban until a Washington-based judge considers evidence about the company's Frand-related behaviour. A hearing is scheduled for 7 May.

Source

for those who skimmed
if Microsoft lose
£2.5bn in potential licence fees
and a potential ban of 360 imports to the US

this will be a blow to the end of the 360's life cycle and possibly the birth of the next Xbox. Microsoft are in some deep water atm. they can only hope to WIN outright. anything other will be considered a loss, as these cost will not be felt by microsoft but by us.

as a side note, expect these dealios to linger for a long time. not just for Microsoft, but Sony and other manufacturers as well as they[patent holders] try to consolidate the monies!

Update:

Motorola wins Xbox and Windows 7 ban in Germany


Microsoft could be forced to recall and destroy its products if Motorola enforces the injunction

Motorola Mobility has been granted an injunction against the distribution of key Microsoft products in Germany.

The sales ban covers the Xbox 360 games console, Windows 7 system software, Internet Explorer and Windows Media Player.
It follows a ruling that Microsoft had infringed two patents necessary to offer H.264 video coding and playback.
A US court has banned Motorola from enforcing the action until it considers the matter next week.
The handset maker is in the process of being taken over by Google.

Appeal

This is just one of several cases involving about 50 intellectual properties that the smartphone maker has claimed that Microsoft should have licensed.
Microsoft has said that if it met all of Motorola's demands it would face an annual bill of $4bn (£2.5bn). Motorola disputes the figure.
A statement from Motorola said: "We are pleased that the Mannheim Court found that Microsoft products infringe Motorola Mobility's intellectual property. As a path forward, we remain open to resolving this matter. Fair compensation is all that we have been seeking for our intellectual property."

Microsoft said it planned to appeal the German ruling.
"This is one step in a long process, and we are confident that Motorola will eventually be held to its promise to make its standard essential patents available on fair and reasonable terms for the benefit of consumers who enjoy video on the web," a spokesman said.
"Motorola is prohibited from acting on today's decision, and our business in Germany will continue as usual while we appeal this decision and pursue the fundamental issue of Motorola's broken promise."

Source