I'm sure most of us know about the lawsuit going on between Motorola and Microsoft, but in case you don't, here's the quick rundown. Motorola is trying to block Microsoft from selling Windows 7 and the Xbox 360 based on a patent claim regarding H.264 video technology. Motorola is demanding way more money than other companies for licensing its patent.
A decision in the case is expected April 17. If Motorola succeeds, the Xbox and Windows 7 could be banned from being sold in Germany, effectively gutting business. This is where Microsoft's move comes in. If Microsoft moves to the Netherlands, it could possibly reduce the vulnerability to legal actions if Motorola wins.
Microsoft ended teamwork with German company Arvato for software distribution. This move will cause a loss of about 50 jobs and is retaliatory to Motorola's patent lawsuit. Germany's patent system favors the suing party by allowing bans to be enforced by the winning party and and having court precedent that often finds in the favor of the suing party.