Datel, in reponse, sued Microsoft, claiming that MS had "specific intent to acquire or the intent to maintain monopoly power in and over the Aftermarket for Xbox 360 Accessories and Add-ons, Microsoft has committed exclusionary, predatory, or anticompetitive acts."
Microsoft filed for the suit to be thrown out, citing security concerns due to Datel's product allowing for Xbox 360 files to be transferred to and from PC-readable MicroSD cards.
Regardless, the November complaint is moot, today, as Microsoft has just patched in support for any USB storage device. Microsoft isn't done, however, and is, in turn, suing Datel for patent infringement over controllers.
nope Reuters reports (via Gamasutra) that "Microsoft asks for an unspecified amount of compensatory damages, payment of royalties or profits Datel made from the sales, while also asking for an injunction on manufacturing" Datel's "TurboFire" and "WildFire" wireless controllers.