Microsoft sued because of Xbox Live

Paltalk has filed a case against Microsoft claiming that Xbox Live infringes on their patent. Some things from the case (Downloaded from the Inquirer):

Game play on the Xbox or Xbox 360 through the Xbox Live online gaming service infringes the PalTalk patents. As a result of Microsoft's unauthorized and infringing use of Paltalk's patented technology, Paltalk has suffered damages in at least the tens of millions of dollars.
...
Microsoft has, without authority, consent, right or license, and in direct infringement of the PalTalk Patents used the methods claimed in the PalTalk Patents in this country.

It continues on about how Microsoft has "actively induced" others to use it, and provided software and hardware for use in "practicing the methods" PalTalk has claimed in it's patents.

The patent Paltalk says Microsoft infringed on states:

PalTalk's technology provides for efficient handling of communications between players necessary to maintain a consistent game environment for all players. PalTalk's technology covers a number of aspects of online gaming, including communications through a group message server as well as establishing groups for online play.

There is more, adding details of what it does and how it works.

Whether Microsoft wins this case or not, they have plenty of money to spare if PalTalk decides to ask for it. It probably won't really change anything besides possibly taking a small sum from Microsoft's vast pool of money.

[Via Xboxic]