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Microsoft asked to pony up US$ 90 million for patent infringement

Posted Mar 10, 2009 at 6:47AM EST by QJ Staff

Listed in: Xbox 360 Tags: Microsoft, Nintendo, patent, Pioneer, Sony, xbox 360 titles

Microsoft Faces 90 Million Lawsuit Over Online Gaming - Image 1

You know what I think of your patents?

And it's another case of patents gone wild. Microsoft is the target of this infringement lawsuit, where they're being asked by PalTalk Holdings to pay them US$ 90 million for using patented technology in the Halo games, as well as both Xbox consoles.

The funny part is that PalTalk purchased those patents for only US$ 200,000. Microsoft's lawyer is using this fact to diminish their multi-million dollar claim, saying "The patents aren't worth much. Certainly not $90 million."

PalTalk maintains the value of the patents, saying that MPath, the company they bought the patents from, was "a pioneer in the online video industry in the area of real-time, multiplayer online games. They claim that:

Microsoft had many meetings with MPath regarding their technology, and Microsoft found the technology to be very valuable. [...] Microsoft decided to go in another direction and work with another company. Obviously, this was upsetting to PalTalk and its employees.

Microsoft, on the other hand, claims that while it did review MPath inventions, they "don't cover the way the Halo games work" since the patents are reportedly based on old dial-up net communications.

More patent madness:

Via Seattle Tech Report

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Waz this the Secret Weapon of Microsoft to combat the recent PS3 success and the whole amount sold of KILLZONE2 GAMES???

Wow, lolz. Microsoft seriously has nothing now with this lawsuit up their butts.

=P & Tats why I stick with Sony & Nintendo.

PS3 Never had issues and I love it.

Nintendo Wii fun to play with friends and family, good family entertainment.

Xbox360??? umm......... Have no clue.....I've played it before but.......couldn't come out with nothing, except Halo is kool but eh, I liked Killzone 2 way better than any other Halo Game.

Thank you Guerrilla for Making the Awesomest Game Ever!!!

P.S. I laugh cause of this stuff of microsoft getting sue. =P

# heh — hush404 2009-03-10 09:26

There's always someone looking for a quick buck eh? Then again... I wouldn't put it past M$ to actually do this type of thing and then try to brush it off just because they have more money than they know what to do with.

# lol — Master Chef 2009-03-10 09:50

Good luck with that buddy

To first two posters, this lawsuit is in regards to tech used in Halo 1 and Halo 2, and the original Xbox Live, not something MS was going to release soon. These asshats just awoke from a coma or something, and decided they want money from MS. If they even have a case (doesn't look like it), they're a little late.

BTW the "whole amount sold of Killzone 2 games" has yet to hit 1 mil in almost two weeks. Gears 2 sold 2 mil on its first weekend, and Halo 3 5 mil in the first week... MS will have no problem trouncing this game's sales with Gears 3 and Halo ODST

Not dogging on Killzone 2 itself, I just beat it and it was great, but it hasn't touched sales in the range MS' franchises do

# Fool... — Bankzy108 2009-03-10 11:38

Killzone 2 had over 1.1 million Pre orders just in Europe alone! So I don't get where your getting the 'has yet to hit 1 mil' from. Now your facts!

# Typo — Bankzy108 2009-03-10 11:39

Know your facts*

# LOL — djman855555 2009-03-10 11:41

i laugh at people who are fanboys. why suck the d*ck of 1 console company? i own both ps3 and 360. wii i wont give a chance as it failed and yet mindless morons still buy them

# mmm — TimShady87 2009-03-10 12:42

According to VG Chartz it was at 750,000 for one week. And the one week mark was what last Friday? And that's worldwide. Either way, Halo 3 and Gears 2 sold way more, you can't argue that.

# Yeah — Navani 2009-03-10 14:17

Why not suck the d*ck of 2 console companies?

# is curious.... — Shabbypenguin 2009-03-10 14:33

does viewing this web page on a ps3 cut off the top part where it says 360? because i cant understand why retards stumble onto this page and blast the 360...

# I got one word for you two guys — avatar76 2009-03-10 16:05

Spitroast

Microsoft prefer to come at you from behind though. LOL!

# what will micr0$ steal next? — gr8tlegend 2009-03-10 18:05

I love my xbox and my windows but hell im not surprised what wont they steal?

# I don't get that either — Master Chef 2009-03-10 22:23

Yes Bankzy I do remember them claiming to have over one million preorders in Europe alone for Killzone 2, but a quick check on VG Chartz will tell you it has yet to hit 900,000 worldwide... Usually VG Chartz is not off by hundreds of thousands, but something could be up.

Even if something is up, sales are not over 2 million since launch. Which is nothing compared to Halo

I really hope KZ2 ends up selling extremely well, because it reportedly cost 100 million to develop. They need to sell two million copies just to break even... And I'm not sure how much of that money actually goes to Sony/Guerilla, they might need to sell more than 2 million copies

# oops — Master Chef 2009-03-10 22:25

This should be in reply to Bankzy under my first post. My bad

# . — Master Chef 2009-03-10 22:31

# now i'm curious — Aces In The Palm 2009-03-10 23:49

why are you guy's so protective over your sections

when i come to QJ i goto www.qj.net

this was in the general section

why do retards think because we've made a comment that we got to the story using the xbox link

idiot!

# either way... — Shabbypenguin 2009-03-11 00:00

its still very stupid to go into (what you know to be an xbox article) and try to flame the creators of the system... but good job on showing that the ps3 fanbase is much more mature...

# fair enough — Aces In The Palm 2009-03-11 01:09

but i think you have to note that when a person see's microsoft getting sued

it raises interest

no matter what console you have

i'm a collector of consoles and games

even have a colecovision somewhere although i dont think it works

so i am interested in every bit of news i see

i am partial to sony's consoles because i was a ps1 and ps2 addict and the controller remained the same

familiarity is a powerful thing

and just because your older

doesnt neccesarily make you more mature

id say sony has an older fanbase

maturity is in how you perceive and convey things

# oh — Aces In The Palm 2009-03-11 02:08

and i apoligise for calling you an idiot

wasnt called for sorry

# WTF... — Bankzy108 2009-03-11 03:18

I don't know if this is true, but when I went on VG it looked very Xbox biasted...there was Xbox everywhere! Thats properly just out of coincidence of when I went on it though, right?

Doubt it cost 100 million to make either...And why would they falsely report that it had 1.1 million preorders - if it didn't? So does that mean only about half them preorders were picked up? Yeah, ok then that sounds right doesn't it =|

# ... — Justingraziano 2009-03-11 04:04

YOU GO PALTALK! SUE THOSE SCAMMING SCUMBAGS FOR ALL THEY GOT!

# How about — Stealth! 2009-03-11 06:01

you leave and stop with the unnecessary fanboy talk. God it's people like you that gives gamers a bad name. -_-

Anyway, I doubt they're going to win. It seems this generation is the time of suing, since Sony and Nintendo has been sued multiple times already. Wow, sad state indeed. Not to mention MS has better lawyers.

# oops — Master Chef 2009-03-11 10:10

I was misremembering, it was GTA IV that cost more than 100 mil to make. There is no confirmed number for KZ2, most rumors put it at 50-70 mil. So they'll deff make a profit on it

And idk what's up with the numbers, something does seem fishy but retailers generally report their numbers direct to VG Chartz. I've heard some people say the "1.1 mil preorders" was preorders placed by retailers to Sony, IE the copies they need to fill their customer's preorders plus copies for walk-in sales, not 1.1 mil preorders placed by consumers at retailers. I can't find a confirmation of that tho

# @ stealth — xXxZEROxXx 2009-03-11 11:44

Bah, don't worry dude. These fanboys attack because they see a threat. I'd just ignore em' and enjoy playing both consoles. Who knows, maybe they'll grow up one day

# my apologies as well.. — Shabbypenguin 2009-03-11 13:33

i happen to be lucky enough that i can afford to have all 3 systems and there is things i like about all of them and dislike about some of them... as for the mature fanbase comment it just seems that a lot of ps3 fanboys are quick to jump the gun and say there is too many stupid kids playing xbox (and they are partially right) as for myself, i think the gamecube had it perfect for me.. had they included another anolog stick in place of the tiny c stick it would have been a lot better IMHO

# ... — Justingraziano 2009-03-11 14:33

Actually I'm not a fanboy, I just HATE Microsoft. Not just the 360, all of their products. They scam and steal in more ways than any company has ever done in history and everyone thinks they are great. Seeing someone sue them is very nice.

# @ Justin — a007rs 2009-03-11 20:42

I've seen a couple of your posts around the site and you cease to amaze me at how many moronic statements you make. You just said you aren't a fanboy but you HATE microsoft. That means you have a bias towards all of microsoft's competitors because you took a side or had a bad experience or two with that company. THAT is being a fanboy.

# a007rs — blkthunda 2009-03-12 18:42

Funny, your comment is kind of weird.

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Microsoft asked to pony up US$ 90 million for patent infringement

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