Microsoft settles US$ 90 million lawsuit over Halo and Xbox tech

Posted Mar 14, 2009 at 9:10AM by QJ Staff Listed in: Xbox 360 Tags: Microsoft, patent
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Microsoft settles lawsuit over Xbox - Image 1I hear money bags a'clinkin.

A few days ago, we heard tell of Microsoft being sucked into a patent-infringement lawsuit demanding that they pony up US$ 90 million in royalties.

The lawsuit was filed by PalTalk Holdings Inc, who claimed that Microsoft used its technology in the Xbox as well as in the Halo games.

Microsoft has since settled the lawsuit for an undisclosed amount of money. A PalTalk lawyer commented that "The parties have settled the case, and PalTalk is quite pleased with the outcome." Microsoft also said that the two parties reached an "amicable agreement." Clink clink clink.

If you're gonna play the guess-the-settlement-amount game, then you're going to have a hell of a time. PalTalk purchased the patents in question for only US$ 200,000, and Microsoft comment in its defense that "The patents aren't worth much. Certainly not US$ 90 million." This puts the settlement figure somewhere between those two.

Via Seattle Tech Report

 
 
 

Comments [refresh]

by Navani - 2009-03-14 05:00
» haha

I think I'm gonna start patenting ideas behind technology that doesn't exist quite yet and see if I can eventually sue someone

by phiyuku - 2009-03-14 06:42
» This time it isn't the same

Obviously Microsoft knows it infringed on something in the patent and therefore did not pursue to continue the case but rather just settle it. If that was not the case Microsoft wouldn't just be handing out money to them without a fight.

by Master Chef - 2009-03-14 08:37
» Not true

Just going to court to defend yourself costs a lot of money, sometimes just paying the money is cheaper. Especially with the lawyers MS has, they cost a ton



We'll never know tho what the reason is

by Navani - 2009-03-14 09:22
» Yeah..

I was going to say what Master Chef beat me to. Plus a prolonged court battle will be bad publicity for Microsoft, and even if they do have the money, it's just easier to sweep everything under the rug.

by Ninjiz - 2009-03-14 10:08
» ...

anyone that know ANYTHING about the legal system, should know that just because you settle out of court doesnt mean you admit guilt or felt you would lose.

Sometimes its simply cheaper to settle out of court instead of paying court and legal fees, dragging out a case that coudl take years to conclude.

by Musev - 2009-03-14 10:26
» OMG

Microsoft ***** you every way they can, what makes you think they dont ***** others up too.



idiots

by Ninjiz - 2009-03-14 11:03
» ...

Yea because Sony has better morals then MS, and cares about ALL its customers cause we are their BFF!!!



Give me a break...

by phiyuku - 2009-03-14 11:08
» Weird I always thought

Big companies such as Sony and Microsoft had company lawyers that get paid regardless of if they fight a case or sit on their ass.

by phiyuku - 2009-03-14 11:19
» Also to add

If I was Microsoft and I had a sure win I would make my lawyers work for their money.



Settlements doesn't mean your guilty or not guilty but IMO it means there is a pretty high chance that you would lose the case and you won't take that gamble. It could mean they really infringed or the opposing side has a really good argument. But then again the opposing side in most cases won't have a good argument unless the defending side has infringed on it.



Settlements also require fees and such since it still requires you to go through legal stuff and such which also still requires lawyers and signatures. Mainly contracts and such so the plaintiff won't continue to pursue the case in court. I would know since my lawyer took off 1/3 of my settlement even though we haven't gone to court.

by Stealth! - 2009-03-15 03:08
» Well

It's either MS knew they infringed on the patents and payed the cost, with a good deal(and apologized) or they just felt like paying due to them having loads of money and to them, lets say it was 20 million, it's like toilet paper to them. Although personally I still think any amount of the millions they've paid is good money.



Was there any specifics in what they used in Xbox and Halo which was PalTalk's?

by Stealth! - 2009-03-15 03:12
» lol

You make it sound like Sony and Nintendo doesn't do the same, Musev?



Good going.

by gammy69er - 2009-03-16 16:18
» Typical M$

Ok, so i'm a Sony Boy, but this is the thing that M$ has been doing since Windows 1.0, stealing other peoples ideas. DOS was the only innovation that Gates came up with himself, that and Direct X. Windows, and Xbox for that matter, are built on other peoples ideas, even the new Windows, "Windows 7" is basically a stripped apart version of Gnone, KDE and OSX all rolled into one (not to say that isn't a good idea, i'm trialling it now), but nothing much new and innovative.



I don't see how anyone could even claim that M$ is innocent, of course they did it, as dose everyone else, but most others buy the rights - Naughty, naughty Billy Boy.

by gammy69er - 2009-03-16 16:19
» oh yeah...

and i guess around $20 mil, 100x profit.

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