BBC News | BUSINESS | Microsoft settles Xbox dispute

Microsoft has overcome an embarrassing obstacle over the name of its forthcoming video game console.

The software giant has reached an agreement with a small technology company which held the rights to the name Xbox.

Details of the deal are been kept under wraps.

It means that XBOX Technologies will alter its name and drop a challenge to Microsoft's use of the name Xbox in return for an undisclosed reward.

"It was a very, very mutually satisfying agreement," said Robert Koolen for Knowledge Mechanics, a computer-based education company that is the main holder of XBOX Technologies.

Lengthy talks

X-Box
Microsoft mounting $500m Xbox marketing campaign
XBOX Technologies filed applications with the US Patent and Trademark Office to use the Xbox name in March 1999, more than six months before Microsoft made its first Xbox filing.

In February, the companies said they were in talks to settle the dispute and avoid a lengthy arbitration process by the patent office.

The Xbox console is Microsoft's first entry into the lucrative home gaming market.

It is set to be unleashed in the US on 8 November with a $299 price tag.

Microsoft is mounting a $500m marketing campaign to take on dominance of Sony and Nintendo in the multi-billion-dollar global video game industry.

Sony launched its Playstation 2 last year.

Nintendo is entering the fray with its GameCube on 5 November, three days before the Xbox.


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