Lucent files lawsuit against Xbox 360

MuGen · 04-18-2006, 11:08 AM

Quote:

Lucent Technologies has filed an injunction that could disrupt the distribution of the Xbox 360 game console because of a patent suit involving MPEG-2 decoding. The suit against Microsoft in was filed in the U.S. District Court in San Diego on grounds that Microsoft has violated a patent it holds on the built-in MPEG-2 "Adaptive Coding and Decoding of Frames and Fields of Video" capability of the console. The patent number 5,227,878 was filed on July 13, 1993.

The abstract patent description reads: Improved compression of digital signals relating to high resolution video images is accomplished by an adaptive and selective coding of digital signals relating to frames and fields of the video images. Digital video input signals are analyzed and a coding type signal is produced in response to this analysis. This coding type signal may be used to adaptively control the operation of one or more types of circuitry which are used to compress digital video signals so that less bits, and slower bit rates, may be used to transmit high resolution video images without undue loss of quality. For example, the coding type signal may be used to improve motion compensated estimation techniques, quantization of transform coefficients, scanning of video data, and variable word length encoding of the data. The improved compression of digital video signals is useful for video conferencing applications and high definition television, among other things.”

Microsoft filed a "No Infringement" lawsuit against Lucent back in 2003 which they won because of a typographical error embedded in the original language of Lucent's patent. Lucent later corrected the language and refiled the corrected patent. Microsoft won on a technicality the first time, but now that Lucent has rewritten their patent, making their case much stronger, if the legal pundits are to be believed.

While having the Xbox 360 removed form store shelves is a very remote possibility, it is possible and if Microsoft loses, the amount of compensation Lucent gets awarded will reflect the total number of Xbox 360's sold at the time the case is settled.

Article: http://www.ps3portal.com/xbox360/article/355.html

Wow, this is going to be a huge blow to Microsoft if Lucent gets it their way. When the article says the compensation could amount to the amount of 360's sold... Xbox would have lost all advantage over Sony and Nintendo in terms of earlier release.

Any comments guys?

Dyne · 04-18-2006, 03:22 PM

This probably won't phase them.

Microsoft is an inhuman corporation willing to shovel out any amount of money for gaining a spot in the digital living room.

MuGen · 04-18-2006, 04:33 PM

Quote:

Originally Posted by Dyne

This probably won't phase them.

Microsoft is an inhuman corporation willing to shovel out any amount of money for gaining a spot in the digital living room.

It's easy to say that about them, but the compensation could amount to how many Xbox 360's have been sold thus far... .therefore, they would lose their head start on Sonendo.

It won't phase the company but it will put a damper in their Xbox 360 market.

KillerGremlin · 04-18-2006, 05:39 PM

My dad worked for lucent. There stock went from like 44 dollars to just a few dollars in just a few weeks. I know lucent is on the rebound but with the type of money Microsoft has to throw around I'm skeptical anything big will happen. Still funny.

DeathsHand · 04-18-2006, 07:06 PM

Quote:

Originally Posted by MuGen

therefore, they would lose their head start on Sonendo.

I believe the headstart they got on "Sonendo" came in the form of simply getting 360s in the hands of consumers, not the money "made" on the console they've sold at a loss...

Microsoft may end up paying money, but they'd still have that foundation of their user base who will continue to support the console...

Ginkasa · 04-18-2006, 08:55 PM

3 to 1 that Micrsoft will just buy Lucent...

/me shrugs and walks away

MrCoffee · 04-19-2006, 10:09 AM

microsoft will probably higher power brokers or whatever they are called which they pay osme guy to give a bad review on lucent the stocks crash then they buy up the company and sell it off piece by piece after the stocks recover because of the massive change.

Fox 6 · 04-19-2006, 11:11 AM

Quote:

Originally Posted by DeathsHand

I believe the headstart they got on "Sonendo" came in the form of simply getting 360s in the hands of consumers, not the money "made" on the console they've sold at a loss...

Microsoft may end up paying money, but they'd still have that foundation of their user base who will continue to support the console...

Exactly, though they could stand to lose money, it doesnt change the fact that thier system is already on the market in poeples hands before the other two.

MuGen · 04-20-2006, 01:45 AM

I understand the 360's are still there.... but from a business perspective.... not only will they be taking a loss with each sale because of production cost vs. retail...... but then if they end up paying compensation for all those units, they will lose even more. I'm not saying this will at all effect Microsoft in any big way, but.. taking a Double-loss on the Xbox 360 would have to mean trying really hard to earn back all the deficit. Sure the consoles still there, but I'm talking money wise.

Losing on production cost, then losing because of a lawsuit.... it's a tough deficit to swallow and possible earn back especially since PS3 and Rev are on the horizon now.... if they lose this suit and end up paying compensation..... it'll be tough for them to regain their financial standings going up against Nintendo and Sony. If Xbox 360 were to be the only console for another year... quite possibly they could recoup what they lost from the 360... but... it's going to be even harder now.

Basically I'm saying... Microsoft is going to end up taking a huge loss on the Xbox 360 (double loss) if they lose the case. Not Microsoft the corporation... but the 360 itself.

Fox 6 · 04-20-2006, 10:22 AM

Quote:

Originally Posted by MuGen

I understand the 360's are still there.... but from a business perspective.... not only will they be taking a loss with each sale because of production cost vs. retail...... but then if they end up paying compensation for all those units, they will lose even more. I'm not saying this will at all effect Microsoft in any big way, but.. taking a Double-loss on the Xbox 360 would have to mean trying really hard to earn back all the deficit. Sure the consoles still there, but I'm talking money wise.

Losing on production cost, then losing because of a lawsuit.... it's a tough deficit to swallow and possible earn back especially since PS3 and Rev are on the horizon now.... if they lose this suit and end up paying compensation..... it'll be tough for them to regain their financial standings going up against Nintendo and Sony. If Xbox 360 were to be the only console for another year... quite possibly they could recoup what they lost from the 360... but... it's going to be even harder now.

Basically I'm saying... Microsoft is going to end up taking a huge loss on the Xbox 360 (double loss) if they lose the case. Not Microsoft the corporation... but the 360 itself.

Well the comment on losing thier head start doesnt really apply then to what you're saying. To me a head start is the system out before the others, wether or not you have net gain.

Plus M$ will probably make it up somewhere with a purchase of some company or a move to monopolise something. :P