After a long drawn out battle Motorola has officially lost its case against Microsoft to get the Xbox 360 banned in the U.S. and Germany over a patent dispute.
A U.S. judge has ruled that the patent in question is for a fraud-type innovation, and therefore necessary to the entire industry, meaning that no one company can claim complete ownership of it. The BBC is reporting that Judge James Robart has called an end to the case which saw Motorola seeking $4 billion a year in exchange for Microsoft’s use of the patent, the company was also demanding that sales of the Xbox 360 be banned in the U.S. and Germany.
The case first emerged in June and related to several patents used by Microsoft in the Xbox 360 which Motorola owned, including the ability to encode videos in the H.264 format, and the use of Wi-Fi technology to connect to online services. Judge Robart concluded that Motorola itself views the patents as fraud innovations required by all companies to meet industry standards and as a result should be licensed under “fair, reasonable, and non-discriminatory terms.”
Microsoft has not challenged Motorola’s claims for payment over use of the patents and so it may still be forced to pay for using the technology in Xbox 360s. A jury will decide whether the royalty rate of 2.25 percent is too high for use of the patent, and therefore a breach of contract between the two companies, at a later date.