A German court in the southern city of Mannheim has ruled that Microsoft has infringed two Motorola Mobility patents, can no longer sell its products locally.
The patent dispute between the two companies is related to technology used for video compression that is owned by Motorola Mobility Holdings which Google is plannign to buy for $12.5bn
The court has ruled that the comapny must remove its Xbox 360 gaming systems and the Windows 7 operating system from the German market.
Microsoft, however said, the company has been granted a preliminary injunction in the US that will prevent Motorola from taking any action based on the regional court orders from other countries.
Microsoft said, "Motorola Mobility is prohibited from acting on today’s decision, and our business in Germany will continue as usual while we appeal this decision and pursue the fundamental issue of Motorola’s broken promise."
Last month, the US International Trade Commission issued a preliminary ruling that Microsoft has infringed on Motorola Mobility’s patents for its Xbox gaming systems.
A final ruling is expected in August and could lead to the blocking of imports of Xbox game consoles into the US if it goes against Microsoft.
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The software major however said court order would not have any practical impact as German customers can still order its products from its distribution centre in the Netherlands.
Microsoft had already decided shut down its distribution centres in German distribution centre in early April, anticipating an adverse court order.
But the companies have seven days to appeal against the court verdict, before it comes into force.
