Microsoft Rejects Motorola Settlement as Xbox 360 Ban Looms
Negotiations on use of patents fall through in latest twist to landmark case.
Microsoft has rejected a settlement offer from Motorola Mobility, keeping alive the lengthy legal battle over alleged patent violation that could see a sales ban on the Xbox 360 in the US.
Motorola Mobility asked for a royalty of 2.5 per cent on each Xbox sale, for the use of patented technologies that include H.264 video codecs and a feature called ActiveSync, which is also used in Windows 7, Internet Explorer and Windows Media Player. Motorola Mobility also asked for $0.50 per copy of Windows.
This offer was turned down by Microsoft, in a ballsy move that sees the company on the back foot. Its defence took a blow recently when International Trade Commission Judge David Shaw ruled in favour of Motorola Mobility and recommended that the Xbox be banned from import and sale in the US unless the dispute was settled.
The court case has proved to be a vastly expensive one for both parties, with a Seattle judge recently stating that the pair could "finance a small country" with the attorney fees already spent.
Microsoft's defence has ranged from claims of breach of contract (that Motorola Mobility demanded "unreasonable licensing fees" for patent use) and public interest (that banning the Xbox from sale would limit consumer choice).
Motorola Mobility was recently acquired by Google.
Motorola Mobility asked for a royalty of 2.5 per cent on each Xbox sale, for the use of patented technologies that include H.264 video codecs and a feature called ActiveSync, which is also used in Windows 7, Internet Explorer and Windows Media Player. Motorola Mobility also asked for $0.50 per copy of Windows.
This offer was turned down by Microsoft, in a ballsy move that sees the company on the back foot. Its defence took a blow recently when International Trade Commission Judge David Shaw ruled in favour of Motorola Mobility and recommended that the Xbox be banned from import and sale in the US unless the dispute was settled.
The court case has proved to be a vastly expensive one for both parties, with a Seattle judge recently stating that the pair could "finance a small country" with the attorney fees already spent.
Microsoft's defence has ranged from claims of breach of contract (that Motorola Mobility demanded "unreasonable licensing fees" for patent use) and public interest (that banning the Xbox from sale would limit consumer choice).
Motorola Mobility was recently acquired by Google.
Companies:
Microsoft
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