Microsoft hit with lawsuit over Xbox memory card ban

[the shadow]

A UK-based manufacturer of Xbox 360 memory cards has begun legal action against Microsoft over the software giant's efforts to prevent so-called “unauthorised” memory cards being used with the console.

Datel Design & Development, the manufacturer of Max Memory cards for the Xbox 360, yesterday filed a complaint with the San Francisco District Court, accusing Microsoft of violating antitrust law.

Microsoft illegally sought to block its competitors, Datel claimed, by releasing an Xbox 360 software update earlier this month that stops gamers from storing data on unlicensed memory cards.

Marty Glick, Director of Howard Rice Nemerovski Canady Falk & Rabkin, the law firm acting on behalf of Datel, said: “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.”

Microsoft has never confirmed what constitutes an "unauthorised" card or why it chose to prevent Xbox 360 owners from using them.

“We believe that with the power Microsoft enjoys in the market for Xbox accessories this conduct is unlawful,” added Glick.

Datel is seeking unspecified damages for the injury it maintains Microsoft has done to its business. It is asking for a jury to decide the outcome of the case. It also wants Microsoft's ban to be lifted and the software giant to be ordered not to impose the block in future.

 

[Nismo]

Good!

Really was a ridiculous decision by MS, can't see Datel winning but hopefully they do.

 

[Hostile_18]

Good!

Really was a ridiculous decision by MS, can't see Datel winning but hopefully they do.

I can, seems to me they have pretty strong grounds.

 

[LeJosh]

If they were licensed then I see a problem but not if they didn't have the license.

 

[EDDS]

If they were licensed then I see a problem but not if they didn't have the license.

exactly

datel do not have a leg to stand on.

 

[Memphis]

exactly

datel do not have a leg to stand on.

That was my understanding, however I have not looking into the details too much.

If Microsoft demand that peripherals for the 360 are licensed, and Datel never bothered obtaining one, then I'll have some of whatever they are smoking.

 

[LeJosh]

That was my understanding, however I have not looking into the details too much.

If Microsoft demand that peripherals for the 360 are licensed, and Datel never bothered obtaining one, then I'll have some of whatever they are smoking.

As far as I'm aware if you're going to produce something for use on the 360 you have to obtain a license from Microsoft, no matter what it is. To my understanding at least.

 

[hood1971]

If they were licensed then I see a problem but not if they didn't have the license.

This is the basis of their claim, saying that “We believe that with the power Microsoft enjoys in the market for Xbox accessories this conduct is unlawful".

Microsoft have a unfair monopoly of accessaries which means they charge consumers over the top prices as with their hard drives.

Unlikely that it will actually go all the way to court - more likely if Datel Design & Development have a strong case then Microsoft will settle so that they can maintain their monolpoly.

 

[LeJosh]

This is the basis of their claim, saying that “We believe that with the power Microsoft enjoys in the market for Xbox accessories this conduct is unlawful".

Microsoft have a unfair monopoly of accessaries which means they charge consumers over the top prices as with their hard drives.

Unlikely that it will actually go all the way to court - more likely if Datel Design & Development have a strong case then Microsoft will settle so that they can maintain their monolpoly.

It's not unfair at all, they own the console they can do what they want with it. I'm sure it is the same with Sony and licenses. I'm not dismissing the fact they're prices are over the top but license fees are there, if you don't buy it you can't manufacture for it. Just because a company believes it's unfair they can boohoo all they want at the end of they day it is a microsoft product.

 

[Hostile_18]

It's not unfair at all, they own the console they can do what they want with it. I'm sure it is the same with Sony and licenses. I'm not dismissing the fact they're prices are over the top but license fees are there, if you don't buy it you can't manufactuer for it. Just because a company believes it's unfair they can boohoo all they want at the end of they day it is a microsoft product.

What if Microsoft said you were only allowed to install microsoft software on a microsoft OS? There has to be some kind of guidelines.

 

[LeJosh]

What if Microsoft said you were only allowed to install microsoft software on a microsoft OS? There has to be some kind of guidelines.

But they havn't so there is no problem here. Maybe they should make it more clear you have to have a license?

 

[AWPC]

Main reason MS blocked these is because people have been using them to cheat by copying their profile to the datel unit then hex editing their achievements and copy the profile back to unlock achievements!

Datel have no chance of winning but obviously they have to try as they face massive loses when the 360 mem cards were their main business nowadays.

 

[Bigpops]

Good for Datel.

It should be up to the end user what they do with their console, within the law. If a guy they wants to buy a Datel card to use on his Xbox, then I don't see a problem. If he then goes to edit his profile on a PC then upload that to Xbox live, then it's Xbox live's problem. They should ban or zero the score of the offending gamertag.

 

[Yungstar 2006]

It's not unfair at all, they own the console they can do what they want with it.

while i'd agree 100% with you, i'm sure there will be some misguided people who actually think Datel is in the right.

hard to decide which is sillier, this or the pirates wanting compen for M$ banning there consoles.

Good for Datel.

told you.

 

[CHokKA]

Microsoft have a unfair monopoly of accessaries which means they charge consumers over the top prices as with their hard drives.

MS may charge a lot for their accessories, but to be honest, their quality is above and beyond that of the 3rd party versions. I have a Joytech component cable and it sucks in comparison to the MS equivalent.

 

[orderoftheflame]

Surely the problem with the Datel memory card from MS's point of view isn't that it's an unlicensed accessory, it's that it's possible to manipulate save data leading to achievement exploits and stuff?

Microsoft are very strict against any kind of save hacking, and I can see why they'd want to stop people being able to copy their saves to a PC for editing.

 

[scorza]

UK company filing lawsuit against US company in the US. Hmm. I don't think Datel have much chance of winning for that reason alone.

 

[Bigpops]

Datel have been making accessories for consoles and computers for as long as I can remember. They had their Action Replay out when I had a Commodore 64 in the mid 1980s. They had also had a cartridge for the Amiga, high capacity memory cards for the Sony PS1 among other accessories that were bigger or better than he official alternatives (if there was one). They're original products, not rip-offs of copies of anyone's technology, so why would they need a license to sell them?

While I don't think Datel will win this lawsuit, I think it's right they stand up for themselves. As far as they're concerned, they've done nothing wrong. They (Datel) designed a way to use dirt cheap storage to store game data on the Xbox 360. Microsoft have now stopped their product working, because they say they don't like the potential for cheating.

Now, if Microsoft can prevent it working, then they must be able to detect the card when it's plugged into the Xbox. If they're concerned about cheating on Live, why not just stop people copying data from it to another storage device, and lock out Xbox live access when the card is present? After all, Live is a service, and you must agree to the terms to use it. Cheating breaks the terms, so fair enough.

The Xbox as it is, belongs to you. You can do what you like with it, as long as you don't break the law. As far as I know, plugging in something MS don't want you to isn't against the law. Beating someone over the head with an Xbox, is.

 

[rp2000]

Surely the problem with the Datel memory card from MS's point of view isn't that it's an unlicensed accessory, it's that it's possible to manipulate save data leading to achievement exploits and stuff?

Microsoft are very strict against any kind of save hacking, and I can see why they'd want to stop people being able to copy their saves to a PC for editing.

Is there any licensed accessories for saving data?


rp2000

 

[orderoftheflame]

Now, if Microsoft can prevent it working, then they must be able to detect the card when it's plugged into the Xbox. If they're concerned about cheating on Live, why not just stop people copying data from it to another storage device, and lock out Xbox live access when the card is present? After all, Live is a service, and you must agree to the terms to use it. Cheating breaks the terms, so fair enough.

I don't think it's as simple as that.

What's to stop someone using the card to exploit a load of achievements, then remove the card and connect to live and update the service with their new achievements?

If they went with your method surely they'd have to either ban the profile and Xbox completely?