PalTalk sues Microsoft over online gaming patent infringement

By Stephany Nunneley, Wednesday, 11 March 2009 01:00 GMT

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PalTalk, an online chat company, has filed a $90 million lawsuit against Microsoft over two patent infringement pertaining to Xbox products.

Allegedly, Halo and Microsoft’s console use patents registered to MPath Interactive that control “interactive applications over multiple computers”.

MPath, the makers of MPlayer PC, VoIP, and HearMe (PalTalk) was described by Max Tribble, Pal’s lawyer, as “a pioneer in the online video industry in the area of real-time, multiplayer online games.”

“Microsoft had many meetings with MPath regarding their technology, and Microsoft found the technology to be very valuable,” he added.

Microsoft’s lawyer admits that the company did review MPath technology, but decided not to use it; plus the patents MS acquired were for less than $200,000 and only pertained to dial-up communication which doesn’t cover “the way the Halo games work.”

A motion for partial judgment was filed by Microsoft, but was denied by Judge David Folsom because it “has not met its burden of showing that the two patents were anticipated by clear and convincing evidence.”

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