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Forums - Gaming Discussion - Xbox 360 ban: Microsoft rejects Motorola settlement

kowenicki said:
kanageddaamen said:

Even though I reject tha rgument that it "ceaces to function" and think your anaolgy is remarkably misguided (I would equate it to removing a trailer hitch from a truck.  The truck can't tow anything any more but you can still use it to get from place to place.) Lets run with it.

You are arguing that this technology is INTEGRAL to the success of the product, that it cannot function without it.  Motorola is asking 2.25% royalties for this absolutely essential function that would it be removed, make the product unusable.  That is not unreasonable at all.  Now I am not certain if this is retail or not, lets assume a nice round average of $350/console.  That is $7.88 for each console.  A pittance with what the video ability means from a profit standpoint for the 360

Lets look at a blu-ray player, which sony charges a $9.50 licesing free for regardless of price.  This is nearly 20% of the cost of a $50 product.  No one argues that is extortion.

Again, MS MUST pay for technology they use, and what Motorola is asking for is not unreasonable.


Sorry... who asks for the licensing fee???  I think you mean the blu-ray consortium.

The last reported license fee for a blu-ray layer was $4.50, that was 2 years ago... it will be even less now.

Naturally, which sony is part of, and since they are the only ones who are a direct player in the Video game market (This is VIDEO GAME chartz, is it not?) I though it fitting enough to just use them.

I must have old data then.  Apologies, 10% of the price then.



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fillet said:
kanageddaamen said:

Even though I reject tha rgument that it "ceaces to function" and think your anaolgy is remarkably misguided (I would equate it to removing a trailer hitch from a truck.  The truck can't tow anything any more but you can still use it to get from place to place.) Lets run with it.

You are arguing that this technology is INTEGRAL to the success of the product, that it cannot function without it.  Motorola is asking 2.25% royalties for this absolutely essential function that would it be removed, make the product unusable.  That is not unreasonable at all.  Now I am not certain if this is retail or not, lets assume a nice round average of $350/console.  That is $7.88 for each console.  A pittance with what the video ability means from a profit standpoint for the 360

Lets look at a blu-ray player, which sony charges a $9.50 licesing free for regardless of price.  This is nearly 20% of the cost of a $50 product.  No one argues that is extortion.

Again, MS MUST pay for technology they use, and what Motorola is asking for is not unreasonable.

Actually you have contradicted yourself, 2.25% of each sale for a product that more than likely makes use of hundreds of patents is entirely unreasonable.

The bluray player is completely different, the WHOLE specification is provided to the manufacturer for reference, and they pay only $9.50 for it - that is a bargain.

If Microsoft charged $9.50 for a manufacturer to license the Xbox 360 specification and allow manufacturers to copy it, would you think that is expensive?

That's just 3 points, your logic is completely backwards and I could samurai slice your argument into pixie dust if you would like me to further, I really can't be bothered though :)

 

...One more, you seem to be confused about the idea of a patent being pivotal to the function of a product, that idea does not mean the patent should be worth more, it actually helps the argument of the opposite of what you are trying to argue. A patent that is pivotal to the function of a product does not make that patent more "expensive" or "valuable", the patent has a set value regardless of what product that patent is used in, in this case it simply means that a court is more likely to side AGAINST!!! that company in a court case because they will assume the patent holder is holding the licensee of the patent to ransom because in this particular instance it is pivotal to it's function.

The point is that the Xbox 360 makes use of a patent that is pivotal to it's function, but that patent does not make up a significant function of the said product.

You clearly have no idea of how these things work though, no disrespect but read up on the very basics of patents law and you'll see the errors of your ways and not regard my post as a patronising piece of rubbish. :)

Seeing as the ACTUAL courts ruled otherwise, your implication of lack of knowledge may be misplaced.  But I will chock that up to an obtuse opinion that you know better than a judge, and hence are either fairly unintelligent, or and ego-maniac and not worth debating with.




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kanageddaamen said:

Even though I reject tha rgument that it "ceaces to function" and think your anaolgy is remarkably misguided (I would equate it to removing a trailer hitch from a truck.  The truck can't tow anything any more but you can still use it to get from place to place.) Lets run with it.

You are arguing that this technology is INTEGRAL to the success of the product, that it cannot function without it.  Motorola is asking 2.25% royalties for this absolutely essential function that would it be removed, make the product unusable.  That is not unreasonable at all.  Now I am not certain if this is retail or not, lets assume a nice round average of $350/console.  That is $7.88 for each console.  A pittance with what the video ability means from a profit standpoint for the 360

Lets look at a blu-ray player, which sony charges a $9.50 licesing free for regardless of price.  This is nearly 20% of the cost of a $50 product.  No one argues that is extortion.

Again, MS MUST pay for technology they use, and what Motorola is asking for is not unreasonable.

You would equate it to that, but a truck getting from place to place is it's primary function. Currently, the primary function of people using an Xbox 360 is to watch videos.

Now, lets break down the difference between something "integral to success" and something critical to function. It is the latter. In fact, in my previous post I called it "a non-major, but critical patent." This patent is like a screw. Screws holding something together are critical, without them, things fall apart - but they aren't 'integral to the success"of anything. peices can be welded or bolted or clipped, etc. Their function is critical, but the component itself is not what makes the product a success.

Microsoft isn't using "motorola video player" free of charge, they're just using a patent related to video playback.

Now, let's assume for a minute that "sony" charging these made up numbers was true - that would be different. A Blu-ray is an entire product on it's own. For a company to charge $10 to enable someone else to mass produce a product which can be sold for up to $300, free of research and development, would be entirely reasonable. This is NOT the same. This would be like a random company charging an additional $9.50 per unit for the specific laser configuration used in each blu-ray machine. it's a small critical function, but a much simpler patent in no way worth increasing the cost of every blu ray player ever made by $10.

Again, MS must pay, but nowhere near this amount. It is FAR from a "pittance" - every nult, bolt, wire, chip, etc is critical to a unit functioning - that doesn't mean it can charge an unreasonable fee for being used.



I would also add, that I am not for a ban on the import, just that MS pays for technologies it uses



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kowenicki said:
kanageddaamen said:

Seeing as the ACTUAL courts ruled otherwise, your implication of lack of knowledge may be misplaced.  But I will chock that up to an obtuse opinion that you know better than a judge, and hence are either fairly unintelligent, or and ego-maniac and not worth debating with.





Who am I?  Someone who develops technologies and worry about fair compensation for inventors and creative people, and those who purchase their works.



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kanageddaamen said:

Even though I reject tha rgument that it "ceaces to function" and think your anaolgy is remarkably misguided (I would equate it to removing a trailer hitch from a truck.  The truck can't tow anything any more but you can still use it to get from place to place.) Lets run with it.

You are arguing that this technology is INTEGRAL to the success of the product, that it cannot function without it.  Motorola is asking 2.25% royalties for this absolutely essential function that would it be removed, make the product unusable.  That is not unreasonable at all.  Now I am not certain if this is retail or not, lets assume a nice round average of $350/console.  That is $7.88 for each console.  A pittance with what the video ability means from a profit standpoint for the 360

Lets look at a blu-ray player, which sony charges a $9.50 licesing free for regardless of price.  This is nearly 20% of the cost of a $50 product.  No one argues that is extortion.

Again, MS MUST pay for technology they use, and what Motorola is asking for is not unreasonable.

The problem with your argument is that Motorola's patent is a standards patent, and it's one patent that is required for decoding H.264 encoded video.  For the $9.50 that the Blu-Ray Association charges (not Sony) you're licensed for all the respective patents associated with the technology, including H.264 video decoding as it is a required standard for playing Blu-Ray discs.  Based on your argument, you're saying 1 patent for $4.50 to $9.00 is fair, but that's 47% - 95% of the cost of the entire patent suite necessary to license Blu-Ray.  There is no way those are fair and reasonable terms.

Not to mention, how is 2.25% on a 250GB Xbox 360 justifiable when the same technology is available on a 4GB Xbox 360?  Why shouldn't it be a single price?  Why should a patent holder benefit from the increased price of value added accessories that have nothing to do with the patent?  That isn't fair or reasonable.

Microsoft's not trying to get out of licensing the technology it's using, they've been negotiating the terms for sometime.  The problem has been that Motorola has agreed to license its standards patents (H.264 and Wi-Fi) under FRAND rules, and it is failing to do so.  No judge has said Microsoft's argument isn't valid, just that Microsoft and Motorola are improperly using the courts.  In fact the ITC has ruled that both Microsoft and Motorola are in violation of each other's patents and that both companies products that are in violation should be banned from import.  The difference at this point is that the ITC in Motorola's argument against Microsoft has yet to release its full recommendation.  They have, however issued the full recommendation to ban the import of Motorola mobile devices.



kowenicki said:
kanageddaamen said:


Who am I?  Someone who develops technologies and worry about fair compensation for inventors and creative people, and those who purchase their works.

what has that to do with the underlined statement I was referring to?

 

What have I said that implies me being an ego maniac?  That I reject a premise and the attached anaolgy?

Let us throw all debate out the window then, else we be labled hypocrites.



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kanageddaamen said:

Seeing as the ACTUAL courts ruled otherwise, your implication of lack of knowledge may be misplaced.  But I will chock that up to an obtuse opinion that you know better than a judge, and hence are either fairly unintelligent, or and ego-maniac and not worth debating with.


No, the actual courts did not rule otherwise.  The ITC judge ruled that both Microsoft and Motorola were infringed on the other's patents.  Motorola infringed on Microsoft's ActiveSync patent (a non-standards patent) and therefore ruled that Motorola mobile devices should be banned.  As well, the ITC ruled that Microsoft's Windows products and Xbox 360 infringed on Motorola's H.264 and Wi-Fi patent, both standards patents.  The preliminary finding by the ITC judge is that the Xbox 360 should be banned from import, however the full ITC body has yet to make its decision on the matter.  The ban on Motorola products is in effect, as President Obama has issued the order.

The ITC could determine that Motorola failed to license its standards patents under fair, reasonable, and nondiscriminatory terms.  If they do that, then Motorola will have to go back to the table with more reasonable licensing terms.



Can we stop with the wall of text quotes. If people can't follow a conversation by actually reading the thread, then maybe they shouldn't be replying.



Adinnieken said:
kanageddaamen said:

Seeing as the ACTUAL courts ruled otherwise, your implication of lack of knowledge may be misplaced.  But I will chock that up to an obtuse opinion that you know better than a judge, and hence are either fairly unintelligent, or and ego-maniac and not worth debating with.


No, the actual courts did not rule otherwise.  The ITC judge ruled that both Microsoft and Motorola were infringed on the other's patents.  Motorola infringed on Microsoft's ActiveSync patent (a non-standards patent) and therefore ruled that Motorola mobile devices should be banned.  As well, the ITC ruled that Microsoft's Windows products and Xbox 360 infringed on Motorola's H.264 and Wi-Fi patent, both standards patents.  The preliminary finding by the ITC judge is that the Xbox 360 should be banned from import, however the full ITC body has yet to make its decision on the matter.  The ban on Motorola products is in effect, as President Obama has issued the order.

The ITC could determine that Motorola failed to license its standards patents under fair, reasonable, and nondiscriminatory terms.  If they do that, then Motorola will have to go back to the table with more reasonable licensing terms.


I never made any claims over the ban, just that the courts ruled that MS infringed on the patents, which they have.  Again, I do not care for the ban, simply the enforcement of payment for copyright material.  I personally don't find the offer unreasonable from Motorola, but MS must have felt otherwise and that they had more to gain financially from rejecting it than paying it.  We will see how the courts decide finally.

The whole crux of my argument is against the mentality in the thread that MS should pay NOTHING (not saying you said that, but there is certain implication to that fact) and that patent law is somehow damaging to consumers, which I reject.



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