Microsoft's legal battle with Motorola has taken another large step towards a console ban, but the company could still narrowly avoid that fate. Judge David Shaw recommended to the International Trade Commission (ITC) that Microsoft be given a cease-and-desist order on sales of the Xbox 360 slim model in the US. He also recommended ceasing Chinese imports of the systems, and a payment of 7% of the value of unsold systems in stores.

Courthouse News Service (via Develop) reports that the ITC can now choose to let that determination stand, in which case it becomes the official stance of the ITC. Alternately, the commission could amend some terms, or send it back for a rewrite. If it does adopt Shaw's recommendation, President Barack Obama will have 60 days to review the decision, after which it would have to be appealed to the Court of Appeals for the Federal Circuit.

This follows a one-two punch against Microsoft in this case, after Motorola won its patent ruling, and was subsequently hit with a German sales injunction -- which won't go into effect until the US case is settled. Motorola claims a technology used across several Microsoft devices, but Microsoft alleges that Motorola demanded an unreasonable licensing fee for the patents.

Microsoft has argued that banning consoles would not serve the public interest, but Shaw claimed that enforcing property rights takes precedence. Though Microsoft could still potentially appeal, the threat of a ban is more real now. Either way, this likely isn't something Microsoft wants hanging over its head as we approach E3.