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Xbox 360 memory card antitrust suit gets settled out of court

Xbox 360 memory card antitrust suit gets settled out of court

January 4, 2012 | By Eric Caoili

Microsoft and accessory maker Datel have settled their respective Xbox 360-related lawsuits against each other, which included allegations of patent infringement and antitrust law violations.

The two companies have been at odds since 2009, when Datel accused Microsoft of "predatory conduct" after the platform holder released an Xbox 360 update that locked out unauthorized storage devices and third-party memory cards, such as Datel's Max Memory line.

The UK-based firm filed an antitrust lawsuit in a San Francisco court that year, claiming Microsoft had "deliberately harmed competition" with the change. It said Microsoft implemented the update with "no visible purpose other than to have that market entirely to themselves."

Microsoft filed its own suit against Datel in 2010 with a Seattle court over alleged infringement of its Xbox 360 controller patents. The publisher said Datel's Turbofire and WildFire controllers violated a patent for a protocol used by wireless accessories and consoles.

After Datel redesigned the controllers and ceased imports of its TurboFire2 Xbox 360 Wireless pad to the U.S., Microsoft withdrew the case -- though it continued to seek an unspecified amount of compensatory damages for past infringement.

Neither company has revealed details from their confidential settlements, but Microsoft spokesperson Kevin Kutz has said the terms were "to the satisfaction of both parties," according to a report from financial news site Bloomberg.

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