Microsoft in $90m Xbox Live lawsuit (CVG 10/3/09)

Microsoft is being sued by online chat company Paltalk Holdings over functions of Xbox Live it says infringes on its patents.

For infringement claims on two Paltalk patents (numbers 5,822,523 and 6,266,686 if you're interested) the company is demanding monetary compensation of $90 million (£65m), according to Seattle PI.

Apparently Paltalk's technology covers a number of aspects of online communications, including "gaming communications through a group message server to maintain a consistent environment for all players, as well as establishing groups for online game play."

Microsoft claims it had meetings with the patents' creator but after studying its technology decided to take a different direction in the development of Xbox Live's tech.

Microsoft is set to begin trial shortly in East Texas.

Someone at sue-happy company PalTalk just got paid. Microsoft has settled with the company that filed suit against the Xbox 360 maker over patent infringement claims related to Halo multiplayer. Make it rain, PalTalk!

PalTalk hit Microsoft with a suit over a pair of patents in 2006, claiming that the multiplayer tech that powered some Xbox Live multiplayer games violated technology patents for "ways to control interactive applications over multiple computers," according to Bloomberg. Those patents were purchased from MPath Interactive Inc. by PalTalk for a sum of $200,000.

Exactly what denomination bill PalTalk patent holders will be making it rain with is unknown. Microsoft and PalTalk have not disclosed the terms of the settlement, putting the figure likely somewhere between $200,000 and $90,000,000. Microsoft spokesfolk would only say the agreement was "amicable."

The trial, which kicked off this Monday, has been cut short, thanks to the settlement.

Everybody back to your games of Halo 3. Everything's right with the world.

Case Closed so that means