Motorola Has Its Day in Court

Microsoft (NASDAQ:MSFT) suffered a setback in its patent litigation with Motorola Mobility (NYSE:MMI) Wednesday as a German court ruled that it had indeed violated Motorola’s patents. The Mannheim court also ordered Microsoft to remove its Windows 7 operating system software and Xbox 360 gaming consoles from the German market. According to German Judge Holger Kircher, Microsoft was in breach of a patent agreement with Motorola regarding its use of video-compression software in Windows 7 and in the Xbox.

However, Microsoft was unfazed by the action as it had already obtained a preliminary injunction from a Seattle court that barred Motorola from implementing any orders issued by courts in Germany. In another move to safeguard its European markets, the company had transferred its software distribution center from Germany to the Netherlands.

“Motorola is prohibited from acting on today’s decision, and our business in Germany will continue as usual while we appeal this decision and pursue the fundamental issue of Motorola’s broken promise,” Microsoft said in a response to the ruling.

The German court’s ruling comes on the heels of last week’s order against Microsoft issued by a judge for the International Trade Commission, which similarly held that it had infringed Motorola’s patents relating to the Xbox’s wireless Internet connectivity and video compression.