Microsoft Settles Xbox Dispute

Microsoft has settled its dispute over the Xbox. A company named PalTalk Holdings Inc. has accused Microsoft of two patent-infringements for the first shooter game Halo. The designs were initially created by MPath Interactive Inc. and were sold to PalTalk for less than $200,000. PalTalk was suing Microsoft for $90 million in royalties for the patents which seems a bit extreme when you see their purchase price of the patents. “The trial centered on technology for ways to control interactive applications over multiple computers.” Microsoft claimed that it took a different path when it developed the Halo game and also challenged the “validity of the patents and the $90 million that PalTalk was seeking.” In the end the two parties settled the case and PalTalk has claimed to be pleased with the outcome. The financial details were not disclosed but it cut the trail short and it was an “amicable agreement.” It was a good idea for Microsoft to settle quickly to avoid another long drawn out trial that catches the public eye. They are launching some new products shortly and there is no need to have bad media going around at that time. It is unfortunate that they have found themselves in court once again, but they made the best of a bad situation.

http://www.seattlepi.com/business/403501_msftxbox13.html