A court in Germany ruled Wednesday that Microsoft infringed two patents held by Motorola Mobility, in a case that could affect sales of its popular Xbox 360 console and the Windows 7 operating system.
The patent spat between the two companies centers on technology owned by Motorola Mobility Holdings Inc., which Google is in the process of buying for $12.5 billion.
Microsoft and Apple Corp. have filed a complaint with the European Union's competition watchdog alleging Motorola unfairly limited rivals from using its patents by demanding exorbitant fees.
In Wednesday's ruling, the state court in the southern city of Mannheim upheld Motorola's complaint on the patent breaches and declared Microsoft Corp. liable for unspecified damages.
The court also ordered Microsoft to remove all products that infringe the patents from the German market, including its Xbox 360 console and the Windows 7 operating system.
But both parties have seven days to appeal before the verdict comes into force, and Microsoft spokesman Thomas Baumgaertner said the company plans to do so. Should Motorola want the verdict enforced before a final appeals ruling is issued, it would have to deposit several tens of millions of dollars as a legal security, the court said.