Datel suing Microsoft over Max Memory card lockout

by JC Fletcher { Nov 23rd 2009 at 5:00PM }

Datel announced that it has filed an antitrust lawsuit against Microsoft, in response to Microsoft's lockout (via Xbox 360 firmware update) of the company's Max Memory Cards. We doubt this is the "remedy" for the lockout issue to which the company previously referred, but it's certainly one way to address it.

"Microsoft has taken steps to render inoperable the competing Datel memory card for no visible purpose other than to have that market entirely to themselves," Datel attorney Marty Glick explained in a press release. "They accomplished their recent update by making a system change that will not recognize or allow operation of a memory card with greater capacity than their own. We believe that with the power Microsoft enjoys in the market for Xbox accessories this conduct is unlawful."

In the press release, Datel goes on to say that the lawsuit is intended to "restore competition" which, the company suggests, is beneficial to consumers. It's now up to a federal court in San Francisco to determine whether the Max Memory-crippling Xbox update constitutes unlawful anti-competitive behavior on the part of Microsoft.

The last time Datel went to court, it viewed the experience from the other side. Sony filed suit against the peripheral maker over the "Lite Blue Tool," which would have enabled users to run unsigned code on PSP hardware.

While I would like Datel to win, I don't see that they have a case. MS could probably counter sue because the 360 memory card design and connector would be copyrighted/patented, which ever would apply in this case.

It is Microsoft's console they can do what they want with it!

A game-related lawsuit I agree with?.......2012 cant come soon enough.

i think it could be pretty bad precedent if datel wins this.

Yeah...I hope datel wins. I love cool and unpredictable accessories...

While I agree that something needs to be done about Microsoft's outrageous add-on control, I do not think they have any basis to sue Microsoft with. I still hope they win just so it breaks the monopoly that is running.

Any accessory must be approved to work with the Xbox 360 by Microsoft. If third parties want to make memory accessories, that's great! They just need to get MS approval first. Now if this lawsuit forces MS to lower the prices on its proprietary memory or to allow third party memory, GREAT! Finally better prices! But at the same time MS has to be allowed the final word on all accessories so that crappy or potential dangerous products don't get connected to your 360.

If they won it would set precedent to pretty much destroy the right of companies who make consoles to charge a licensing fee for hardware... and likely software as well.

On the one had... it probably should.  On the other... why would people make consoles?  If they did they certaintly would all follow the Wii "profit first" model.  You wouldn't be seeing any loss leader giant jumps in graphics technology systems.

"...constitutes unlawful anti-competitive behavior on the part of Microsoft."

FINALLY, a company gets it and steps forward in calling them on this BS.

Phew.

Nobody had sued Microsoft in like a week. I was getting worried >_