Microsoft Uses Apple Defence In Datel Lawsuit

Lawyers say Microsoft within rights to restrict 'unauthorised accessories'.

Posted by Staff
Microsoft Uses Apple Defence In Datel Lawsuit
Microsoft has filed a motion to dismiss Datel's anti-trust lawsuit from November, using Apple's recent legal fights with unauthorised Mac vendor Psystar as a defence.

The third party peripheral maker originally took legal action against Microsoft after Xbox 360 software updates blocked the use of its memory cards. Microsoft's argument is that it is within its right to remove support for any peripherals that it doesn't specifically authorise.

“Xbox 360 purchasers knowingly and voluntarily gave Microsoft the right to prohibit the use of unauthorized accessories,” says the filing from Microsoft's lawyers. “Each Xbox 360 comes packaged with a software license requiring consumers to agree that the Xbox 360 software can be used only with Microsoft authorized accessories.”

Apple's legal fight centred on Psystar's selling of custom-built PCs preloaded with copies of Mac OS X. Apple's End User License Agreement (EULA) restricts the use of a Mac operating system on non-Apple hardware, and Psystar consequently lost the case.

It is this example that Microsoft is using to support its argument, and notes in its filing that Psystar responded to Apple's legal threat with antitrust claims, “much like those alleged by Datel, alleging that Apple had sought to monopolize a primary market for the Mac OS as well as the aftermarket for hardware that could be used with the Mac OS and had tied the Mac OS to its own hardware.”

“Datel’s monopolization theory depends on excluding from the relevant market numerous products that fit Datel’s own definition, such as the Nintendo Wii, the Nintendo DS, the Sony PSP, and the Sony PlayStation 2 — all multiplayer online dedicated gaming systems,” the filing continues.

“Many of these products have outsold the Xbox 360 (perhaps explaining Datel’s desire to exclude them from its constricted market definition). The only rationale Datel provides is that the Nintendo Wii is cheaper and has somewhat less functionality than the Xbox 360. But the law is quite clear that markets cannot be defined 'by price variances or product quality variances. Such distinctions are economically meaningless.'”

The full filing can be found via TechFlash. The hearing for Microsoft's defence is scheduled for 2nd March at the U.S. District Court in San Francisco.
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Comments

SPInGSPOnG 25 Jan 2010 19:21
1/2
And there was me, thinking that Microsoft may have stopped being the same evil, petty, monopolistic f**kwads that they used to be. But no. Same old same old.

The Apple comparison is specious. Apple prevented the sale of new Psystar hardware, they did not stop the old hardware working, and render the investment of consumers wasted. Microsoft has done that. Evil f**kers.
PreciousRoi 30 Jan 2010 16:17
2/2
Yeah, sure you were...

MS acted in exactly the manner any other company would have...Apple, Sony, Nintendo...any of them wouldn't think twice about defending what they perceive as their patch. In both cases the situation is covered by the license, Datel made a calculated gamble with their customers money by selling a product MS never authorized and now they want to cry about it.

Overpriced proprietary peripherals suck. The price MS offers their wireless adapter for is bloody criminal. But THEY ALL DO IT, its not as though MS is especially guilty here...well, OK the wireless adapter might be the biggest ripoff in gaming...but you're kidding yourself if you think Sony or Nintendo wouldn't defend what they perceive as their rights if they thought it necessary, or had the necessary technology to disable unauthorized accessories been available sooner.

Datel sold their customers stuff they knew wasn't kosher, they might not have thought that MS would do something like disable them, but the responsibility falls exclusively on their shoulders. A class action lawsuit by their customers against Datel would make more sense to me...I've yet to see the third-party accessory that'd be worth crippling console manufacturers control over their own equipment...I'd have to think that would lead to even shoddier products from the 3rd parties, and I've seen some crap products from the likes of Mad Catz and Datel....
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