Microsoft Settles Patent Infringement Lawsuit Over Halo & XBox

[Starlight]

Microsoft Corp. said Thursday it settled a patent-infringement suit in which a New York company was demanding $90 million in royalties on the Xbox video game system.

Financial terms weren't disclosed, Microsoft spokesman David Bowermaster said, adding that it was an "amicable agreement." The settlement cuts short a trial that started this week over the suit, filed by closely held PalTalk Holdings Inc.

"The parties have settled the case, and PalTalk is quite pleased with the outcome," Max Tribble, a PalTalk lawyer, said in a phone interview.

In opening statements Monday, Tribble said that "Halo" first-person shooter games and the Xbox console on which they are played infringe two patents for inventions developed by MPath Interactive Inc. PalTalk bought the patents for less than $200,000, Microsoft's lawyer, David Pritikin, told the federal jury in Marshall, Texas.

The trial centered on technology for ways to control interactive applications over multiple computers. MPath was "a pioneer in the online video industry in the area of real-time, multiplayer online games," Tribble said. Tribble didn't immediately return a call to his office.

Microsoft said it chose a different path in developing the "Halo" game. It also challenged the validity of the patents and the $90 million that PalTalk was seeking.

The entertainment and devices division, which includes the Xbox games and console, generated $5 billion in sales in the six months ended Dec. 31, the company said Jan. 22 in its quarterly report. The "Halo" games are the company's best-selling Xbox game franchise.

Overall, Microsoft reported $31.7 billion in sales in that period.


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[saviour07]

Originally Posted by Starlight "The parties have settled the case, and PalTalk is quite pleased with the outcome,"

i'd be "quite pleased" as well if i'd screwed M$ for $90million lol

[Alucard]

They agreed with something but i don't think it was the 90million, i think M$ talk to him directly and say "hey i will give you 10million if you shut your moth" thats M$ for you hehe

[rauca1n3]

I wish I could come up with an idea for a game and someone could steal it then tell me " shut up and take this 90 million for your troubles ". I'd try to do it at least 1 time a year. Yessir.