Datel Sues Microsoft
Memory card issue sparks lawsuit. Article written by Gastos84 in Xbox 360 News, on Tuesday, November 24, 2009 at 10:02.UK firm, Datel, is suing Microsoft over its recent decision to render all “unauthorised memory units,” useless. The antitrust lawsuit, which is being handled by San Francisco-based law firm – Howard Rice Nemerovski Canady Falk & Rabkin (catchy) – is aiming to restore competition and respond to consumer demand.
Datel founder – Mike Connors – has said that their brand of memory cards have sold over 50,000 units without a “single report of harm to the Xbox console,” adding that Microsoft’s equivalent “does exactly the same thing—with the difference that it offers only one-quarter the memory while listing for the same retail price.”
Datel’s Max Memory cards are available in either 2 or 4GB with the former having a SRP of $39.99 whilst MS’s 512mb version (originally retailing for $59.99) has the same price tag.
Marty Glick – Howard Rice Director and senior attorney on the case - has stated:
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. They accomplished their recent update by making a system change that will not recognize or allow operation of a memory card with greater capacity than their own. We believe that with the power Microsoft enjoys in the market for Xbox accessories this conduct is unlawful.
The Antitrust Law is there to ensure that the manufacturer of a product doesn’t have a stranglehold over the consumer and that their right to choose hasn’t been affected; as such, Microsoft’s recent ‘update’ is being seen as “predatory conduct”. If you so wish, you can view Datel’s complaint here.
Comments
Please note that all comments are the opinion of the individual author and not TheSixthAxis.
cc_star | 24/11/2009 10:05
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I’d have to side with Datel on this it is anti-competitive and probably would constitute predatory conduct, but hauling Microsoft through the courts takes years and years, and Datel will run out of money before MS do.
Gastos84 | 24/11/2009 10:10
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I can’t help but think, reading the complaint, that finding 12 jurors who have no problems with any part of Microsoft, is going to be difficult.
illogicology | 24/11/2009 10:18
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I think the message it sends to Microsoft is more important, not that they can’t win but that they can’t go unchallenged which is important methinks.
bajere | 24/11/2009 13:50
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i think people are looking too deep into things here…
“4GB with the former having a SRP of $39.99 whilst MS’s 512mb version (originally retailing for $59.99) has the same price tag.” that’s where the problem is. M$ are just unhappy that people are getting more value. They throw the 360’s away to get market share, then hope to recoup money in the extras.
Kamokazi-UK | 24/11/2009 10:15
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I also think that Datel is in the right. I can see work arounds, if the issue is with the limit on card size i.e. buttons to select different 512mb chips?
nofi | 24/11/2009 10:22
Wants a custom tag.
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The Datel cards and third party devices have, in the past, been gateways to homebrew etc, haven’t they? I can see why Microsoft aren’t happy with this.
jimmy-google | 24/11/2009 10:31
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They’ll be unhappy about anything that hits their profits even if its i legal. I’m very much on Datel’s side – it’s bad from a consumer point of view as it allows MS to charge what they like (which is a lot). Competition needs to exist.
I guess its MS own fault – there seems to be little to no piracy on ps3 games and you can swap the hard drive out for any 2.5″ hard drive on the market but MS have made their own memory cards and as a result provided a way for the 360to be exploited. Their own greed has got the better of them and back fired.
Uhyve | 24/11/2009 10:49
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While that was certainly true on the original Xbox, on the 360, official memory cards are apparently just as easy to use for cheating (since I believe Datel sell a cable that allows you to connect any 360 memory card to a computer… which I suppose have just recently gotten a legitimate use). That hasn’t stopped Microsoft from claiming that they did this to stop cheating though…
I’m actually wondering about the ramifications of this if Datel win. If they did, would that mean that Microsoft could be forced to open up the 360 for other 3rd party peripherals? Maybe we could see a hard drive or wireless adapter that doesn’t cost stupid amounts of money (I actually ended up getting a wireless bridge for £20 instead of getting ripped off for one of those £45 official wireless dongles).
Raen | 24/11/2009 11:46
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You already can get a cheaper version of the HDD (maybe not any more). Someone (it may actually be the source company for the 360 HDDs) was bundling the same model drives with a chasis that’d fit the 360 for way less. Might not be happening any more though.
What bridge’d you get? I’m interested in getting one.
Uhyve | 24/11/2009 12:12
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Grabbed one off eBuyer called “Belkin G Wireless Client Bridge / Gaming Adapter”, doesn’t seem to be on eBuyer anymore though. It was alittle niggley to set up but then, I didn’t actually read the manual, and I suppose I did get it done eventually…
seedaripper1973 | 24/11/2009 10:49
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Another day, another tale of microsofts greed….go Datel! (they used to be just up the road from me)
iiekka | 24/11/2009 10:59
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is it any differnt to apple stopping 3rd party aps being installed on an iphone?
cc_star | 24/11/2009 11:05
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It is no different to Apple declining Apps which compete with services that either Apple or the networks already offer, so yes they are both anti-competitive.
iiekka | 24/11/2009 11:16
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so why do we let them get away with it! need to get the EU onto them, the EU likes to fine MS billions lets do the same again and to apple
hazelam | 24/11/2009 11:17
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except in this case ms were rendering something many people have bought already unusable.
but really they’re the same sort of thing.
what’s needed is some company willing to go up against apple the way datel are going up against ms.
i bet ms would love to be able to dictate what software a windows pc is allowed to run.
Raen | 24/11/2009 11:49
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I think if the Google Voice debacle continues there might be more interest in looking at Apple’s lockdown. Google are certainly big enough to challenge Apple.
cc_star | 24/11/2009 12:03
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Good point Hazelam, I’ve not parted with any money or anything that Apple declines to have on their App Store
And Raen, it’s Google Voice and Google’s Sat Nav thing that I’m interested in on the App store
hazelam | 24/11/2009 12:18
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anybody remember when apple were the little guys trying to fight the monopolistic microsoft?
guess what they say about power corrupting is true.
or maybe the one about joining them if you can’t beat them.
BadBoyBoogie | 24/11/2009 11:23
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More bullying tactics from Microsoft. Good luck to Datel !!
skibadee | 24/11/2009 14:00
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yeah cash suckers
carlosfilippsen | 24/11/2009 11:41
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Datel FTW!
Watchful | 24/11/2009 12:28
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So if I understand correctly, Datel could make and sell third-party memory cards of up to 512MB without any problem? I can see MS using that as the get-out for any anti-competitive challenges. To be honest I can’t blame MS for wanting to remove one route that people have been using to run homebrew software on their 360s either, as nofi pointed out earlier. Rendering useless large memory cards that people have already bought isn’t great, but they’ll just point out that buried in the fine print is something along the lines of “only approved third-party accessories are guaranteed to work”.
Aitrus | 24/11/2009 13:06
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But if Datel can sell cards if they make them smaller, MS’s defense of doing this to stop homebrew is blasted to pieces. As I understand it, it’s the 3rd party cards that makes the homebrew possible, not the size.
Kitch | 24/11/2009 14:56
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M$ rushed the launch of 360 and thats why the RROD etc. It’s also the reason why it’s been hacked. How does Sony allow you to run Linux, change the hard drive and use just about ANY 3rd party kit without it being hacked? Because Sony invested long term.
The PSP has been hacked and some would argue the Homebrew scene is a good thing. As i know nothing about it i couldn’t comment. At the end of the day M$ and Apple BOTH need challenging.