Motorola Mobility and Microsoft have been engaged in a legal battle for some time now, with the former claiming various patent violations by the latter. Earlier this month, the German courts ruled in favor of Motorola and ordered Xbox 360 consoles banned in the country, but Microsoft won a preliminary injunction staying that order. Now, an International Trade Commission judge says 4GB and 250GB Xbox 360 S consoles should be banned in the United States and has even recommended the move to the rest of the ITC. These consoles are currently manufactured in China, and if the ban becomes true, then no new 360s would arrive in the US. Consoles currently on sale would be hit with a cease-and-desist notice, and Microsoft would have to pay Motorola seven percent of the value of any unsold console still in the US.
Microsoft, on the other hand, is not that concerned with the ITC judge's remarks and is confident the ITC will rule in its favor. Microsoft says it hopes Motorola will have to make its patents available on "fair and reasonable terms," and that it does not expect any problems when the ITC concludes its investigation on August 23rd.