MICROSOFT SEEKING TO BAR 2 ACCESSORIES FROM MARKET
Microsoft is trying to get govt. to bar 2 unlicensed Xbox accessories from U.S. market. At issue are videogame system selector X-Selector and X-Connection dual shock controller from Ultimate Game Club (UGC), based in Old Saybrook, Conn. As we first reported late last month, Fish & Richardson law firm, acting on Microsoft’s behalf, filed complaint with U.S. International Trade Commission seeking investigation of UGC for alleged violations of Sec. 337 of 1930 Tariff Act (CED June 25 p2).
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According to disclosures in full Microsoft ITC complaint, company charges that UGC’s X-Selector -- which bears uncanny resemblance to Xbox console -- and X-Connection violate 2 of its Xbox design patents (D452,282 and D452,534) and thus should be barred from importation and sale in U.S. UGC goes by various alternate names, including Innovation Technologies, Future Tech and FutureTeck. Microsoft said in complaint: “UGC is in the business of manufacturing, importing, distributing and/or selling videogame accessories including the ‘X-Selector’ and the ‘X- Connection’ that evidence a clear motive to misappropriate Microsoft’s patented designs in addition to Microsoft’s valuable brand awareness.” Microsoft also said it had filed suit in U.S. Dist. Court, New Haven, charging UGC with patent infringement and requesting permanent cease-and-desist order.
Microsoft pointed out that X-Selector had been sold in U.S. via retailers including EBgames.com division of Electronics Boutique (EB) and Gamestop.com, as well as directly from UGC’s Web site, www.innovation1.com, which also sells various additional game-related products, including LCD monitor for PS one and Dreamcast modification chip. As our affiliated newsletter Television Digest with Consumer Electronics reported in April 2000, UGC -- under name Innovation Technologies -- also sold PlayStation 2 (PS2) consoles in U.S. that year, well before Sony started marketing them officially here. In spring of 2000, company placed ads in trade magazines announcing it had PS2 consoles in stock. UGC Web site Tues. had only page saying “site is currently in Beta and will be fully operational very soon.” EBgames.com and Gamestop.com refer to UGC as Innovation Technologies, while UGC Web site refers to it as FutureTeck. Microsoft said it appeared from shipping label that Future Tech was “division of UGC that is responsible for the sales and delivery of videogame accessories purchased” from company’s Web site.
UGC hadn’t returned call for comment by our Tues. deadline. It was unclear whether Microsoft had asked EB and Gamestop to stop selling X-Selector and X-Connection. It has declined comment on case and attorney Brian Racilla of Fish & Richardson didn’t reply to our requests for comment, nor did EB and Gamestop return calls. While X-Selector remained available for sale Tues. at EBGames.com site for $17.99, we were unable to find it at Gamestop.com. But both retail Web sites still were selling X- Connection at $24.99.
X-Selector includes electronic housing and serves as interface between TV or monitor and up to 4 videogame systems, including Xbox. X-Connection is dual shock converter designed to allow gamer to play Xbox console games with PS2 controllers. Microsoft argued that electronic housing of both products was “the same or substantially the same to the eye of the ordinary observer as the electronic housing” of Xbox console for which Microsoft had received both cited patents. It said it believed both UGC accessories were manufactured in China because each stated on retail packaging that came with them “Made in China.” Included at EB’s site Tues. were 2 scathing customer reviews of X-Selector -- one saying hooking up accessory had caused him “to lose more than 80% of the brightness and picture quality” of his TV and other complaining he “bought it and returned it the next day” after experiencing same kind of problem with TV’s brightness.
Central figure at UGC is Keith Taruski, whom Microsoft in complaint identified as UGC founder and operator. Documents supplied to us by U.S. Attorney’s office in New Haven said Taruski was convicted in mid-1990s of distributing bootleg CDs and sentenced to 15-month prison term by Judge Dominic Squatrito, U.S. Dist. Court, New Haven. We were able to track down UGC’s phone number only after discovering complaint at www.ripoffreport.com Web site in which apparently disgruntled customer claimed $62.98 money order sent to Innovation/FutureTech for purchase of videogame controller was cashed, but product was never delivered. According to site, retailer denied ever receiving order.