THE BUZZ: Microsoft could face an import ban on Xbox 360s in the U.S. after a judge ruled that the console infringes on four Motorola patents.
The BBC reports that Motorola’s complaints are linked to the console’s use of H.264 compression and WiFi Connectivity.
These four infringements are just part of an ongoing case involving around 50 of Motorola’s intellectual properties the company claims Microsoft should have paid a license for. Microsoft has stated that paying the costs would set them back $4 Billion a year.
A panel is set to review the decision in August, and if it rules in Motorola’s favor then Microsoft would either have to pay a settlement or face Xbox 360 consoles being denied entry to the U.S.
EGM’s TAKE: Considering that Motorola has only has one ruling in its favor so far we expect Microsoft to be feeling pretty confident. Even if the worst case scenario occurs it will simply pay Motorola and take the hit rather then risk having its console banned. We don’t feel that the need to worry about an Xbox 360 shortage any time soon. Microsoft must be quite sure of themselves as one spokesperson told the BBC, “We remain confident the commission will ultimately rule in Microsoft’s favor.”