Datel Sues Microsoft Over Xbox 360 Memory

Peripheral maker, Datel, is suing Microsoft over the latter's Xbox 360 update that disables "unauthorised memory units".

The complaint is for "Unfair Competition; and for tortious interference with prospective economic advantage" and it could prove ground breaking if successful in terms of the rights of platform holders to close off their systems.

The case is being served up by a San Franciscan law firm called Howard Rice Nemerovski Canady Falk and Rabkin on behalf of Datel. The company's founder, Mike Connors claims that 50,000 of Datel's memory units have been sold without “a single report of harm to the Xbox console. He then proceeds to dig directly at Microsoft, saying that the company sells equivalent product, "with the difference that it offers only one-quarter the memory while listing for the same retail price."

The suit itself claims that "On information and belief, Microsoft's purpose in disabling Datel's memory cards is to prevent consumers from choosing a Datel product that offers better value for the price.

"There is no benefit to consumers from Microsoft's decision to target and disable Datel's memory cards.

"To the contrary, Microsoft's actions will leave approximately 50,000 consumers with useless memory cards (and without the ability to access their data on the cards), forestall innovation, and deprive future consumers of the benefits of competition."

Microsoft has yet to respond.

Full complaint here.

See also sixthaxis.