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Patent litigation risk drives Microsoft to move European distribution


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#1 TheSentinel

TheSentinel

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Posted 02 April 2012 - 04:50 PM

QUOTE
Patent litigation risk drives Microsoft to move European distribution center
The company is moving the center from Germany to the Netherlands
By Loek Essers
April 2, 2012 09:17 AM ET

IDG News Service - Microsoft is moving its European distribution center form Germany to the Netherlands due to ongoing patent litigation, a company spokesman confirmed Monday.

The move is prompted by a lawsuit filed by Motorola against Microsoft over the H.264 video standard. "The problem is that Motorola isn't living up to its promises about its patents," Microsoft spokesman Thomas Baumg?rtner said.

Microsoft uses the H.264 standard in Windows 7 and the Xbox, among other products. A ruling favorable to Motorola by the court in Mannheim, Germany, on April 17 could mean injunctions against Microsoft products in Germany, effectively excluding the company from that market.

That is the main reason for the move, which the company decided to do more than a month ago, according to Baumg?rtner. "I would call it a prudent move," he said.

Baumg?rtner said he did not where the Dutch distribution center will be located.

Motorola recently refused a $300 million bond offer from Microsoft to postpone enforcement of potential German injunctions. That is why Microsoft asked the U.S. District Court for the Western District of Washington for a temporary restraining order and a preliminary injunction preventing Motorola from enforcing any legal victory in its case being heard in Mannheim until a U.S. lawsuit over the same patent is decided.


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