Microsoft Gets Industry Support Against A Potential Import Ban of Xbox360

The U.S. International Trade Commission has received letters from major players asking the USITC to not impose an import ban on Microsoft’s Xbox360. The USITC has yet to make a decision but a ban recommendation from USITC Judge David Shaw has people on edge. The proposed ban is in response to allegations that four H.264 video decoding patents owned by Motorola Mobility have been violated. Microsoft has received support from technology companies like IBM, Intel, Nokia, Cisco Systems, Apple, the Entertainment Software Association and US congressmen. The group has told the USITC that a ban on imports of the XBOX360 would set a dangerous precedent and will harm the technology sector of the US.

The XBOX360 uses “standards-essential, video-related patents” in its 4GB and 250GB video game console which are held by Motorola Mobillity. Apple’s view point in the matter has been that Motorola is not in compliance with FRAND requirements by bringing a lawsuit against Microsoft. FRAND or fair, reasonable, and non-discriminatory terms (FRAND) are used in standard-setting organization to keep patent holders from developing monopolies it their property becomes an industry standard. The owner of a patent is obliged to license their patent to anyone without discrimination under the FRAND agreement.

Supporters of Microsoft think that if a ban does occur they are also in danger. A success against Microsoft means that many other tech companies licensing the patent and using it as an industry standard will face bans on their products. This will impact bottom lines and will also affect the the game development industry that produces content for the Microsoft gaming console.

The U.S. Federal Trade Commission has also had its say in the matter after a filing was submitted as part of the USITC investigation into the matter. The FTC said that it was worried that organizations will make agreements under FRAND and then try to gain more money for licensing by using a ban.

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