Microsoft Xbox 360 S facing ITC import ban in US
updated 05:31 am EDT, Wed May 23, 2012
Xbox 360 ITC ban caused by H.264 patent infringement
The Microsoft Xbox 360 S is to be banned from sale in the US following an International Trade Commission ruling. In a court document released on Monday, ITC Judge David Shaw recommended the sale of both 4GB and 250GB versions of the console be blocked. His recommendation related to a ruling made last month that Microsoft was infringing on four patents owned by Motorola relating to the H.264 video format.
Microsoft is to post a bond the equivalent of seven percent of the wholesale value of unsold 360 consoles in the US, as well as face the ban on further imports. Although Judge Shaw has made the ban as a recommendation, it is up to the six-member trade commission to review the decision in August before it takes effect.
Previous documents relating to the case showed Judge Shaw condemning the actions of Motorola, noting that there is "no evidence that any company would agree to the offer that Motorola sent to Microsoft." Cited was a 2.25 percent royalty rate being asked on products covered by Windows 7, Internet Explorer 9, and the Xbox 360, which was seen as unreasonable by the Judge. Regardless, until Microsoft enters into a formal licensing agreement with Motorola, the ban is likely to be enforced.
