Xbox Facing $90 million lawsuit from online chat company

[Zeus]

PayTalk has commence a $90 million law suit against MS, alleging that the company infringes on two of its patents. More specifically, the infringements relate to controlling applications over multiple computers.


Online chat company PalTalk Holdings has begun a $90 million lawsuit against Microsoft, alleging that the company’s Xbox products infringe two of the firm’s patents.

The New York based company, which claims over 4 million users worldwide, alleges that Microsoft’s Halo and the Xbox console itself infringe the patents. The patents relate to "controlling interactive applications over multiple computers" and were originally registered by MPath Interactive.

MPath is best known for the MPlayer PC gaming service, which was later sold to GameSpy. MPath was also responsible for VoIP (voice over internet protocol) and video conferencing service HearMe, which PalTalk still operates.

PalTalk lawyer Max Tribble described MPath as "a pioneer in the online video industry in the area of real-time, multiplayer online games," according to Bloomberg.


News Source: <A href="http://www.gamasutra.com/php-bin/news_index.php?story=22631/" target="_blank">Gamasutra</a>

[DEDDOA]

If MS knowingly infriged the patents then they deserve to get spnaked in court. However, it alwasys ssems a bit odd to me when companies like this crawl out of the woodwork when somthing becomes successfull, and usually, quite some time after the patents they claim are being infringed, were initially infringed. This one has taken 7-8 years to suface, I suspect that their patent rights have almost ended, and so are now trying one last atempt to cash in.

[sirxlaughs]

Paltalk? Ugh. How can it be only Halo and then the console itself? I guess I just don't understand all the technical stuff behind it.

[tech3475]

why do these lawsuits always happen years after the supposed infriging product is widely known?

[grapeape]

This is going no where...the first patent describes a unicast system where a primary server controls the chat and distributes to dial up users. It even goes so far as to talk about how impractical transmission speeds over lan are since in its words high speed connections are reserved for corporate use...my how times have changed. :)
http://www.google.com/patents?id=IucWAAAAEBAJ&dq=5,822,523

[ThreeDog]

If MS knowingly infriged the patents then they deserve to get spnaked in court. However, it alwasys ssems a bit odd to me when companies like this crawl out of the woodwork when somthing becomes successfull, and usually, quite some time after the patents they claim are being infringed, were initially infringed. This one has taken 7-8 years to suface, I suspect that their patent rights have almost ended, and so are now trying one last atempt to cash in.

They didn't, ms investigated their patents and technology and then went in another direction, like it says in other places how does paltalk have the nerve to attempt to gain $90 million on patents they BOUGHT for $200,000 yes thats right they bought patents just so they could do something like this.. this is a case of patent trolls sulking nothing more.

[sirxlaughs]

why do these lawsuits always happen years after the supposed infriging product is widely known?

If they wait, they can sue for larger amounts citing years of possible lost earnings. It's all crap.

[Sepioth]

If they wait, they can sue for larger amounts citing years of possible lost earnings. It's all crap.

It take a lot of time to get a lawsuit going. All the research that's involved and what not. I'm sure there was also many talks with MS first about trying to fix this out of a court. Lawsuits take time to get started .. that is why 99% of these type of suits happen years after they are released.

[Blades]

Patent Trolls, this is exactly what is going on here.


;

[gerbilboy]

I hate when tiny companies try to sue giant companies like MS over MILLIONS, just because their product is failing but not MS's:rolleyes:

[Sepioth]

I hate when tiny companies try to sue giant companies like MS over MILLIONS, just because their product is failing but not MS's:rolleyes:

Whose product fails and whose product is a success doesn't really matter legally. If they hold a patent to something it's theirs ... end of story.

If a big company like MS uses a patent that is owned by another company (no matter how tiny) they deserved to be sued (and vise-versa too). Seeing as to how MS has the best lawyers money can buy I'm sure they THOROUGHLY check patents to make sure they don't infringe on it. But sometimes things do get missed and overlooked.

Just because MS is a big company with as much money they need at their disposal does not give them the rights t do whatever they want.


BUT ... what I do hate is when companies try to defend patents that VERY loosely and VERY vaguely are remotely similar to theirs.

[QrafTee]

Paltalk? Ugh. How can it be only Halo and then the console itself? I guess I just don't understand all the technical stuff behind it.

The more popular it is, the more "damage" the infringer caused and the more money the patent holder can sue for.

[ThreeDog]

Microsoft just settled out of court, the sum is undisclosed, obviously the patent applied to them or it was used without permission.
http://seattlepi.nwsource.com/business/403501_msftxbox13.html

[grapeape]

Microsoft just settled out of court, the sum is undisclosed, obviously the patent applied to them or it was used without permission.
http://seattlepi.nwsource.com/business/403501_msftxbox13.html

Or it was simply cheaper to settle than to fight, that actually happens alot. Concidering paltalk bought the patents for $200,000 and even frivilous cases regarding patents can drag on until the costs are in the millions, I would imagine that MS simply offered them cash to go away.