Microsoft Rejects Motorola’s Settlement Offer, ITC May Ban 360 In The US

We’ve been talking about this for a while now but there is a new episode to this story as reported by Reuters. Motorola handed down its terms for a settlement this week to end this bickering but Microsoft has rejected them calling them unfair and terms that far exceed market rates. Motorola’s settlement was as follows: Motorola would pay 33 cents for each Android phone sold (since they infringe on Microsoft’s ActiveSync patent) and Microsoft would pay 2.25% of every Xbox sold and 50 cents for each copy of Windows sold.

Whew. That is really lop-sided. The thing is, all Microsoft has against Motorola is the ActiveSync patent. Motorola has the advantage here with five patents including built-in Wi-Fi and video decoding. Since these terms have been rejected, the International Trade Commission is still thinking that a ban on sale against Microsoft in the US is a smart move until this is settled. That would mean that all incoming shipments for parts and consoles would be halted. No more shipments of 360’s to stores.

If the two companies can’t come to some settlement soon, the ITC will take its decision to the White House where the Office of the President will have 60 days to finalize what the ITC wants to do. This is dire news for Microsoft. There is no firm date as to when the ITC will make their decision and then involve the White House. That doesn’t necessarily mean that Obama would make the decision, by the way. He’s got plenty of people on staff that can make these decisions, hence the term “Office of the President”.

We’ll keep you informed on this on-going legal battle that could have very bad ramifications for gamers, especially as we get closer to the holidays. Think about it, that’s 6 months away but the finalized decision will take 2 months and this could go on for a bit more time. Could you imagine if Microsoft had no 360’s to sell on Black Friday or Christmas time? Yikes.