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Wednesday, May 23, 2012
ITC Judge Recommends Blocking Xbox 360 S Imports

Microsoft's Xbox video game consoles should be banned from import into the U.S. after an ITC Judge ruled that they infringe on four Motorola patents.

ITC Judge David Shaw recommended that sales of the 4GB and 250GB versions of the Xbox 360 S console be blocked and that Microsoft post a bond of equal to 7 percent of the wholesale value of the unsold consoles already in the country.

"It is recommended that the Commission enter a limited exclusion order against infringing Microsoft products," Shaw wrote in his finding. "It is further recommended that the Commission issue a cease and desist order. Additionally, it is recommended that Microsoft be required to post a bond for importation of accused products during the Presidential review period."

The trade commission is expected to review the decision and issue a statement in August.

Microsoft told CDRInfo that it remained confident the commission would rule in Microsoft's favor and that "Motorola would be held to its promise to make its standard essential patents available on fair and reasonable terms."

In November 2010 Microsoft sued Motorola over wireless and video coding patents it used in the Xbox and its smartphones. Microsoft claimed that Motorola was charging excessive royalties for licensing on those patents. Motorola countersuited with the the U.S. District Courts for the Southern District of Florida and the Western District of Wisconsin alleging infringement of sixteen patents by Microsoft's PC and Server software, Windows mobile software and Xbox products.

On April 1 a regional court in Mannheim, Germany ruled in favor of Motorola allowing the company to ban the distribution of Microsoft's products, as well as recall and destroy Windows 7 and Xbox 360 units that were on German store shelves, However, Motorola faces significant hurdles if it wants to enforce the bans. Prior the the German court ruling, a judge in U.S. District Court in Seattle granted Microsoft a preliminary injunction and temporary restraining order against Motorola in Germany.

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