Microsoft Xbox 360 could be banned in the U.S.

Redmond-based Microsoft, the producer of popular Xbox 360 video game console, has brushed off a Motorola patent settlement offer that could have resolved the long-running patent infringement case.

Motorola had offered to pay 33 cents for every handset that uses Microsoft’s ActiveSync technology. But the handset maker, which is now a part of Internet search giant Google, also demanded a royalty of 2.25 percent on each unit of the Xbox 360 game console and 50 cents per copy of Windows OS for the alleged use of its patents.

Kirk Daily, vice president of intellectual property at Motorola, said Microsoft needed to show that it was ready to be reasonable and respecting the contributions that Motorola had made in developing the mobile phone industry.

The U.S. International Trade Commission (ITC) has already recommended a ban on imports of all Android devices that makes use of ActiveSync and all Xbox 360 game consoles until the two parties settle the patent disputes.

In case settlements continue to be brushed off, the ITC will declare its verdict to the White House, and the office of the President will have to finalize the decision with in sixty days.

As the Xbox 360 is manufactured in China, blocking imports would in effect slay U.S. sales of the popular game console.