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Microsoft Sued over Xbox Live

fiorenza writes "Ars Technica is reporting that Paltalk has sued Microsoft in the Eastern District of Texas over its Xbox Live service. The suit alleges that Microsoft's Xbox Live infringes on two of its patents, and that the company has suffered damages 'in at least the tens of millions of dollars,' which raises obvious questions about why they waited four years to file the suit (Xbox Live was launched in late 2002)." From the article: "Microsoft, as a company that runs multiplayer game servers, is alleged to be violating these patents. It's not clear how they're doing so--the initial complaint provides literally no evidence of Microsoft's guilt. The filing instead describes the Paltalk patents and the dates that Xbox Live went, err, live. After five pages of this, Paltalk simply claims that "gameplay on the Xbox or Xbox 360 through the Xbox Live online gaming service infringes the Paltalk patents," then goes on to ask for a jury trial. Presumably, actual information will be released once the trial begins."

7 of 68 comments (clear)

  1. actual information? by gEvil+(beta) · · Score: 4, Funny

    Presumably, actual information will be released once the trial begins.

    I don't know if I'd make that assumption anymore. (see SCO v. IBM)

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    This guy's the limit!
  2. Give with one hand, take with the other by legoburner · · Score: 4, Interesting

    Even Microsoft must be getting fed up with the instability caused by the patent system in the US. Do they benefit enough from having such a large number of patents that they would not put pressure on the system for change, or is everything building up to one big patent-lawsuit blowout with IBM/Sun/Every other major computer player (or does that work more like cold war style M.A.D.)?

    1. Re:Give with one hand, take with the other by cybermancer · · Score: 4, Insightful

      Actually a cold war is fairly accurate. Many patent rich companies use the patents they hold, that they know others are infringine upon as a defense to keep other patent rich companies from suing them.

      Anytime a patent infringement lawsuit comes in they will examine the business of the one suing them to see which patents they can counter-sue on. Their goal is to counter sue for enough damages to exceed the original complaint.

      Most companies in the computer industry know not to sue IBM because they hold so many patents that everyone is most likely infringing on. Occasionally some small company does attempt to sue them and IBM makes an example of them.

      --
      "Anything is possible with enough programmers, time and pizza." (Substitute caffeine for time as needed.)
  3. Re:Is this really such a big deal for Microsoft? by cybereal · · Score: 5, Interesting

    You seem to have missed about half the point here. You are correct about the costs being insignificant to the XBOX project for Microsoft. Well, not entirely insignificant, but certainly nowhere near untenable.

    However, the real point of this article is about the patent trolls. If you look at it as a case as MS having to decide if paying for trials or paying the desired settlement (which is bound to be less than what is asked in the trial itself) then you'll see that MS may be better off just paying these guys without a trial. This is a serious problem with the legal system.

    You see, if Microsoft decided to take this to court, and they won, then a precedent would be set for similar cases in the future. This precedent would serve the smaller companies that can't really afford to pay out settlements. But instead, MS will probably just settle and give into this extortion and future cases just like this will continue to come about with no new ammunition against them.

    It's unfortunate but, our legal system relies heavily on precedents and if none are set, well, no progress is ever made.

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    I read the script, and I think it would help my character's motivation if he was on fire. -Bender
  4. Re:Patent apparently about internet audioconferenc by EEBaum · · Score: 4, Funny

    While the program is running, a Paltalk representative arrives at your house, kicks you in the shin, deposits a dog turd onto your carpet, and spits in your mouth. And for those with a sixth sense, he imagines kittens being thrown into a wood chipper.

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    -- I prefer the term "karma escort."
  5. Re:Patent apparently about internet audioconferenc by edremy · · Score: 4, Funny
    How the fuck do I enjoy voice and video with all of my senses?

    I'm not totally clear on that but I'm sure the porn industry will lead the way.

    --
    "Seven Deadly Sins? I thought it was a to-do list!"
  6. Microsoft Sued over Xbox Live? by Evro · · Score: 4, Funny

    That's an odd way to sue someone, I'd think they'd do it in a court of law.

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    rooooar