Patent Dispute Results in Xbox 360 Distribution Ban in Germany

Update: A clarification to the original story. While the German court has made this decision, Motorola are unable to act on it as of yet, since a US district court has granted an injunction that prevents immediate action.

Source – Gamespot

Original Story –

Alongside a number of other Microsoft products including Windows 7, Internet Explorer and Windows Media Player, the Xbox 360 has been banned from distribution in Germany due to an injunction, MCV reports.

Last week it came to light that Motorola is currently battling Microsoft in US courts over what it believes to be violated patents in regards to video codecs and wireless technology in the Xbox 360.  While the full case will be reviewed in august, it seems that action has already been taken in Germany, though it may extend to other countries if Motorola succeeds in the case. A worst case scenario could even lead to the system being banned from sale in the US – the biggest market for the system, unless Microsoft agrees to pay £2.5bn annually, a figure which the company certainly wouldn’t like to add to their yearly costs.

In a statement given to MCV, Microsoft states –

“This is one step in a long process, and we are confident that Motorola will eventually be held to its promise to make its standard essential patents available on fair and reasonable terms for the benefit of consumers who enjoy video on the web,”

“Motorola is prohibited from acting on today’s decision, and our business in Germany will continue as usual while we appeal this decision and pursue the fundamental issue of Motorola’s broken promise.”

Hopefully these matters will be resolved soon, as these events will surely hurt sales of the system.

Source – MCV