- 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...