US Xbox business targeted in Motorola legal war

May 9th, 2012, 00:44 Posted By: wraggster

Microsoft faces China import ban; Legal fees so far 'could finance a small country'

An increasingly complex and bitter legal dispute between Microsoft and Motorola Mobility has escalated to the US International Trade Commission and now threatens to throw the Xbox business into disarray.
Microsoft will no longer be permitted to import Xbox 360s from China to the US – a business practice considered vital in driving down production costs – unless the company wins two separate legal disputes in both court and at the US International Trade Commission.

On Monday a Seattle court heard that both companies “could finance a small country” with how much they have spent on legal fees so far.

At the heart of the issue is a patented Motorola technology that Microsoft uses across a number of devices and technologies such as Windows 7, Internet Explorer, Windows Media Player and Xbox 360.
Microsoft alleges that Motorola breached contract by demanding “unreasonable licensing fees” for use of the patents. It is believed the royalty rate would have been 2.25 per cent for each unit sale, something which is argued would cost Microsoft some $4 billion each year.
Motorola’s counter-claim is that Microsoft gave up its right to negotiate on the royalty rate as soon as it began lawsuit action.

http://www.develop-online.net/news/4...rola-legal-war

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