Microsoft Corp.’s Xbox video-gaming system won’t be blocked from entering the U.S. after a trade panel found Thursday that it doesn’t infringe a patent owned by Google Inc.’s Motorola Mobility unit.
The International Trade Commission in Washington found the Xbox doesn’t infringe Motorola’s patent for a way to establish communication between the gaming system and accessories, such as the controllers, ending a case filed in November 2010. The agency upheld a March ruling that cleared the Xbox of the infringement claim.
The case is part of a larger dispute between the two companies over who is using whose patented inventions. Microsoft wants Motorola Mobility to pay royalties on smart phones that run on Google’s Android operating system. Google claims Microsoft owes Motorola Mobility royalties on the Xbox and the Windows operating system.
Microsoft, based in Redmond, Wash., has argued that, even if it violates the Motorola patent, banning the Xbox would be an extreme remedy that would reduce consumer choice and hurt game developers.
The Xbox has been the top seller in U.S. consoles for morethan two years. Microsoft’s entertainment unit, which includes the Xbox, generated $9.6 billion in sales last year, or 13 percent of the company’s revenue, according to data compiled by Bloomberg.
Microsoft unveiled a new version, called Xbox One, earlier this week that employs voice commands and motion sensing to recognize users and let them switch seamlessly between games, live television and Skype video calling.
The system is scheduled to go on sale later this year as part of Microsoft’s strategy to fend off competition from Sony Corp.’s PlayStation 4 and Nintendo Co.’s Wii U, as well as new devices from Apple Inc .,Facebook Inc. and Amazon.com Inc.
Microsoft won a trade commission case last year limiting Motorola Mobility’s ability to include on its phones a feature called ActiveSync, which lets users coordinate schedules between their phones and personal computers.
Mountain View, Calif.-based Google and Microsoft also have patent disputes in Germany and Seattle. Microsoft and Apple also have filed complaints in the U.S. and Europe accusing Motorola Mobility of demanding unfair royalty rates for some patents that relate to widely used technology like Wi-Fi connections or video transmission.
Business, Pages 24 on 05/24/2013