Microsoft settles Xbox 360 lawsuit with Datel

A legal battle between Microsoft and the maker of third party peripheral products for the Xbox 360 console has now been concluded. Bloomberg reports that Microsoft has settled its case with UK-based Datel Design and Development Inc. on December 30. Details of the settlement were not revealed but a spokesperson at Microsoft said the terms of the deal were approved "to the satisfaction of both parties."

The original dispute started in 2009 when Datel sued Microsoft, claiming that one of its Xbox 360 software updates had eliminated support for Datel's third party Max Memory cards. Datel claimed that Microsoft's move was an example of  "predatory conduct".

Microsoft then decided to sue Datel in 2010, claiming that Datel had violated one of Microsoft's patents for a wireless protocol used by Xbox 360 controllers. Microsoft accused Datel of infringing that patent with the release of Datel's Turbofire and WildFire controllers.

Microsoft later withdrew its lawsuit after Datel redesigned the controllers and also stopped the import of the TurboFire2 Xbox 360 Wireless controller into the US. However, until the recent settlement, Microsoft continued to ask for compensation for the alleged past infringement.

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13 Comments

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All I know is, Datels cabled xbox 360 controller is crap.

My Son went through 3 in a year we purchased from Argos. In the end we changed it for a MS controller which since January 2011 has not let him down.

leesmithg said,
All I know is, Datels cabled xbox 360 controller is crap.

My Son went through 3 in a year we purchased from Argos. In the end we changed it for a MS controller which since January 2011 has not let him down.

The Microsoft controllers are very high quality. I've had my two since the day I bought my 360 right after it came out and have never had a problem.

waqastariq said,
Microsoft's new year resolution, settle all cases

Yes, MS should settle all cases before pushing more proprietary garbage within Win8 on the public.

justmike said,

Yes, MS should settle all cases before pushing more proprietary garbage within Win8 on the public.


It would appear that you need to get out more . . . chill.

UndergroundWire said,

Really? They didn't file for Chapter 11. So why would they do that?

Patents are often used as an opportunity to raise capitol to avoid bankruptcy in a last ditch effort... Bankruptcy doesn't always come first... Kodak is a good example here.

M_Lyons10 said,

Patents are often used as an opportunity to raise capitol to avoid bankruptcy in a last ditch effort... Bankruptcy doesn't always come first... Kodak is a good example here.

Usually Patents are sold after a Chapter 11 (Bankruptcy Protection [NOT TO BE CONFUSED BY CHAPTER 7 (BANKRUPTCY)]) to raise capital if no investors are interested. It is usually a last ditch effort to avoid Chapter 7 (Bankruptcy).

What you are saying is 100% correct however you are confusing Chapter 11 with Chapter 7. Again Kodak is a good example of that.