After hearing the latest round of the patent battle between Microsoft and Motorola, Judge David Shaw has recommended that the International Trade Commission levy a Cease and Desist order, banning the import of Slim model Xbox 360s to the US. Both the 4GB and 250GB slim models infringe on four patents owned by Motorola, according to the decision.
In addition to the ban, the decision calls for Microsoft to post a bond for seven percent of the value of the unsold questionable Xbox 360s.
In the series of lawsuits fighting over the issue, which have been ongoing for quite awhile now, Motorola claims that the technology employed by the Xbox 360 to decode video content infringes on patents their patents.
Microsoft, unhappy with the result, claimed that the ban would be unfair to consumer who would be forced to choose between the PS3 and Wii for their Video Game hardware needs. The judge rejected the argument, saying that intellectual property supersede maintaining diversity in the market.
As for the bond, Microsoft has requested the amount be reduced to 2.5 percent. Motorola, on the other hand, has asked that judge order the full value of the unsold consoles to be posted.
As of now, the judge's recommendation is simply that, a recommendation, but should the ITC making the ruling official, President Obama will have 60 days to review the decision, after which the suit will likely head to the Court of Appeals for the Federal Circuit.
In other words, the decision was a nasty blow to Microsoft, but the war is far from over. Don't go stockpiling Xbox 360s just yet.