Two-and-a-half years ago, online communications company PalTalk announced it would be suing Microsoft for infringing on two of its online gaming patents. PalTalk claimed that Halo's online component and the Xbox and Xbox 360 consoles themselves clearly infringe on technology relating to "controlling interactive applications over multiple computers" which was developed by MPath Interactive, then acquired by PalTalk Holdings for a sum of $200,000.
Recently, PalTalk decided to move foward with the case, and is attempting to seek $90 million in damages from Microsoft for the "tens of millions of dollars" the company lost as a result of Xbox Live's online offerings. PalTalk lawyer Max Tribble claimed Microsoft met with MPath to look at their online gaming technology, and "found the technology to be very valuable." Afterwards, they supposedly yoinked it.
Microsoft's lawyer, David Pritkin, confirmed the company met with MPath, but decided to "go in a different direction and work with a different company," which he says upset PalTalk, and could be one of the main reasons for the suit. He added that the patents aren't incredibly valuable, and that the $90 million in damages sought by PalTalk is a fairly exorbitant sum. The trial is set to take place in a U.S. District Court in Marshall, Texas, with a verdict likely to surface in the coming weeks.
Reader Comments (40)
Posted: Mar 10th 2009 8:33PM Ahmedz said
PalTalk........Seriously...?
Posted: Mar 10th 2009 8:29PM ChiTownRuler23 said
all about those dead presidents
Posted: Mar 10th 2009 8:31PM technoKyle said
These lawsuits are getting increasingly tenuous. Can I sue someone for using my oxygen?
Posted: Mar 10th 2009 9:34PM (Unverified) said
lol yeah no kidding. So they met with you and then go on decided to go a diferent direction and now you suing them for not picking you? lol.. is that possible?
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Posted: Mar 10th 2009 8:32PM Johnnynumber5 is powered by cell said
obvious patent troll is obvious. If I could turn $200,000 into $90,000,000 I might also go after Microsoft.
Posted: Mar 10th 2009 8:34PM (Unverified) said
can i sue the kid who cut me in line at lunch this morning
Posted: Mar 10th 2009 8:42PM KeenCommander said
No, you can just call the police. The person who patented cutting people can sue him.
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Posted: Mar 10th 2009 8:42PM Lekko said
Well they couldn't go with PalTalk since nobody who plays Halo online talks like pals.
They had to go with HateSpeak technology instead.
They had to go with HateSpeak technology instead.
Posted: Mar 10th 2009 8:53PM Da Largest said
Fuck patent trolls.
"I'm gonna come up with an idea! And then, I'm gonna wait until someone else implements that idea in a better way than I ever could so I can make a profit by doing absolutely nothing!"
Sickening.
"I'm gonna come up with an idea! And then, I'm gonna wait until someone else implements that idea in a better way than I ever could so I can make a profit by doing absolutely nothing!"
Sickening.
Posted: Mar 10th 2009 9:03PM Chris DPSN AggieCEO XBLThe Aggi said
wow, MS using other people patents?? dont they have enough of their own???
Posted: Mar 10th 2009 9:08PM vidguy said
you do know that violation of a patent is patent infringement, not copyright infringement, right?
Posted: Mar 10th 2009 9:35PM (Unverified) said
whats the diference? im spanish (not mexican) lol.. explain pls
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Posted: Mar 10th 2009 9:49PM vidguy said
Most legal systems recognize multiple forms of intellectual property. In American law, they are: copyright, trademark, patent, and several subsets (trade dress, etc).
Copyright includes the right to reproduce, distribute, perform, or display a copyrighted work. If you photocopy the latest best seller, you violate copyright. If you download music without paying for it, you violate copyright.
Patents are timed exclusive rights to make and profit from a patented invention. Here, PalTalk is asserting that Microsoft violated its exclusive right to use the technology.
Trademarks are generally logos and product names. If you use the Nike swoosh on your tennis shoes, you violate trademark.
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Copyright includes the right to reproduce, distribute, perform, or display a copyrighted work. If you photocopy the latest best seller, you violate copyright. If you download music without paying for it, you violate copyright.
Patents are timed exclusive rights to make and profit from a patented invention. Here, PalTalk is asserting that Microsoft violated its exclusive right to use the technology.
Trademarks are generally logos and product names. If you use the Nike swoosh on your tennis shoes, you violate trademark.
Posted: Mar 10th 2009 9:13PM (Unverified) said
What about this Interweb all those young whippersnappers are using? Doesnt that allow "controlling interactive applications over multiple computers"? And what about mobile phones, Wii, DS, PS3, PSP, Dreamcast, etc.?
Also I like how they pointed out how Microsoft said they "found the technology to be very valuable." All I can imagine is Microsoft sending over a Depression era gangster who says "nyah, that technology looks pretty valuable see. It'd be a shame if someone were to steal it"
Also I like how they pointed out how Microsoft said they "found the technology to be very valuable." All I can imagine is Microsoft sending over a Depression era gangster who says "nyah, that technology looks pretty valuable see. It'd be a shame if someone were to steal it"
Posted: Mar 10th 2009 9:35PM Just A Canuck said
I love how that made me think of "The Simpsons".
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Posted: Mar 10th 2009 9:54PM Johnnynumber5 is powered by cell said
"nyah, that technology looks pretty valuable see. It'd be a shame if someone were to steal it"
wow dude that was pretty funny stuff. I kind of pictured Joe Peschi saying it more than Wiggum. Had me laughing for a good minute.
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wow dude that was pretty funny stuff. I kind of pictured Joe Peschi saying it more than Wiggum. Had me laughing for a good minute.
Posted: Mar 10th 2009 9:15PM (Unverified) said
This has SLIGHTLY more merit than most patent troll cases. Gamers might recall MPath's MPlayer service back in the late 90s. That said, I don't recall them doing anything unique that wasn't also seen in similar networks of the time like WON or TEN, so this is yet another parasite looking to feed on somebody more successful.
Posted: Mar 10th 2009 10:59PM (Unverified) said
thats what MS gets for ripping ppl off KARMA is a B word.
Posted: Mar 10th 2009 9:48PM ColorblindMonk said
Never even heard of PalTalk, but from reading that article, it looks like PalTalk is suing just 'cause Microsoft decided to work with someone else. They may as well be suing Nintendo, too.
Posted: Mar 10th 2009 10:11PM JoshMilewski said
Fuck fucking patents.
Posted: Mar 10th 2009 10:22PM petepete said
this is a waste of our fucking tax dollars. use the court system for something that has caused real injustice... not some lame attempt at sucking the blood from the successful companies
Posted: Mar 11th 2009 9:16AM (Unverified) said
I could be wrong, but I believe in these cases, the suing company pays the court costs, usually with the intent of shifting that cost over to the company they are suing, provided that they win the case.
So, in effect, this is actually putting money into our government, rather than taking it out (if I understand it correctly).
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So, in effect, this is actually putting money into our government, rather than taking it out (if I understand it correctly).
Posted: Mar 10th 2009 10:24PM AUserName said
So... Anyone else for doing away with software patents? Anyone? I'm submitting a patent that deals with the create and use of "executables" using 1s and 0s in a electrical computational environment. I'll be freaking rich.
Posted: Mar 10th 2009 10:36PM (Unverified) said
See?
Now THAT's the real trouble with Tribbles...
Now THAT's the real trouble with Tribbles...
Posted: Mar 10th 2009 11:47PM (Unverified) said
looks like M$ will have raise xbox live to pay off the lawsuit lol
Posted: Mar 10th 2009 10:51PM TheE3Guy said
Here's the difference with these two companies, one of them is a multi-billion dollar company that offers great services and products, and one I've never heard of before. What makes this "PalTalk" think they have any relevence within society? Hasn't online gaming been around for like, 10 years anyways? People have been having lan parties for years now. How does this company think they have any merit in this case? I predict an epic fail.
Posted: Mar 10th 2009 11:26PM vidguy said
That's not how patents work. Generally speaking, if you file a valid patent you can sue anybody that sells or profits from the patented invention at any time during the exclusivity period. You don't have to sell the invention yourself. Hence all the patent trolling. It's just like cybersquatting on domain names, at least before the AntiCybersquatting Consumer Protection Act kicked in.
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Posted: Mar 10th 2009 11:47PM (Unverified) said
I just looked these tards up at PalTalk, they'll be lucky to come out of this lawsuit with their company intact.
Other than the fact that they loosely interpreted what their program does to include a description of what XBox Live games do, here is the full description of what their intellectual property does... it integrated video, chat, and audio into one program and allows the user to set up and maintain sessions, and it controls YahooIM, AIM, ICQ and other messenger programs. The company was formed in 1999, and their software uses Outlook (a windows program) to set up session times, and can only run on Windows.
Here is where the whole scam falls apart. There are tons of other companies who have been providing conference software which integrated audio, video, and messaging for years, why haven't they been suing them? On top of that this claim against Halo only covers one portion of what they are accusing Microsoft of, and as has been pointed out has been done for years by uber computer geeks without their software, Halo only actually provides an audio communication conduit, the video portion of the game is generated through a combination of external calculations and locally generated, and no text messaging occurs, mainly because in the time it takes you to text you could be shot dead 5 or 10 times. Simply looking at their business structure and future outlook they probably determined the only way they'll survive is a quick settlement or pay out from a big company in a related field... Microsoft.
Other than the fact that they loosely interpreted what their program does to include a description of what XBox Live games do, here is the full description of what their intellectual property does... it integrated video, chat, and audio into one program and allows the user to set up and maintain sessions, and it controls YahooIM, AIM, ICQ and other messenger programs. The company was formed in 1999, and their software uses Outlook (a windows program) to set up session times, and can only run on Windows.
Here is where the whole scam falls apart. There are tons of other companies who have been providing conference software which integrated audio, video, and messaging for years, why haven't they been suing them? On top of that this claim against Halo only covers one portion of what they are accusing Microsoft of, and as has been pointed out has been done for years by uber computer geeks without their software, Halo only actually provides an audio communication conduit, the video portion of the game is generated through a combination of external calculations and locally generated, and no text messaging occurs, mainly because in the time it takes you to text you could be shot dead 5 or 10 times. Simply looking at their business structure and future outlook they probably determined the only way they'll survive is a quick settlement or pay out from a big company in a related field... Microsoft.
Posted: Mar 11th 2009 12:27AM (Unverified) said
I'm a Nintendo fan, but this is wrong no matter who's getting the butt of it. I know how we can solve this...
Patent Scalper Prevention Act
All patent infringement claims without schematic paperwork and/or an operational demonstration model at the time the infringement occured shall be ignored without exception.
Patent Scalper Prevention Act
All patent infringement claims without schematic paperwork and/or an operational demonstration model at the time the infringement occured shall be ignored without exception.
Posted: Mar 11th 2009 12:51AM R Planteer said
Itty bitty paltalk (never even heard of them) vs Microsoft? Another small ass company looking to make a quick buck, that will fail miserably because MS's legal team could probably give legal advice to Jesus Christ himself at this point.
Even if MS did steal it (which im doubting, but I havent researched it enough), its like a penguin going into a polar bear's home demanding its fish back. Dead fucking bird...
Even if MS did steal it (which im doubting, but I havent researched it enough), its like a penguin going into a polar bear's home demanding its fish back. Dead fucking bird...
Posted: Mar 11th 2009 10:10AM (Unverified) said
All these lawsuits suits against MS, Sony & NTO always turn to BS & shit so don't worry.... People these days. That's why I won't help an injured person on the. street... I could be framed or sued from any corner. TRUTH!!!! I'd call 911 no more lol....Sorry i've heard alot of shyt
Posted: Mar 11th 2009 12:11PM Cap Morgan said
Actually some of these suits win, or get settled, though the last one MS settled on (about rumbles on the controller), they did some manuvering to come out ahead by getting a slice of the money from Sony when they settled. Nintendo's still trying to fight the case though, last I heard.
These types of patents though I do not respect. Patents on processes, gestures, and the like are just plain stupid. What if someone had a patent on 2 or more computers sending data through a wired or wireless connection? Wow like that took a lot of though to think of? And we'd have no networks, internet or online gaming because we'd have to pay some turdball massive sums for being the first to the patent office to claim it.
I'm all for patents for INVENTIONS. This isn't an invention.
These types of patents though I do not respect. Patents on processes, gestures, and the like are just plain stupid. What if someone had a patent on 2 or more computers sending data through a wired or wireless connection? Wow like that took a lot of though to think of? And we'd have no networks, internet or online gaming because we'd have to pay some turdball massive sums for being the first to the patent office to claim it.
I'm all for patents for INVENTIONS. This isn't an invention.
Posted: Mar 11th 2009 12:16PM Kodros said
"The trial is set to take place in a U.S. District Court in Marshall, Texas"
So in other words, someone is going to death row.
So in other words, someone is going to death row.
Posted: Mar 11th 2009 2:51PM (Unverified) said
http://en.wikipedia.org/wiki/XBAND
sounds like a "controlling interactive applications over multiple computers" device to me...
sounds like a "controlling interactive applications over multiple computers" device to me...
Posted: Mar 12th 2009 1:35PM (Unverified) said
You clearly have no understanding of IP law. First, as someone pointed out, since this involves patents, its patent infringement, not copyright infringement. Second, there is no way a "verdict" will be coming out in the coming weeks... unless you stretch the phrase "coming weeks" to mean in the next 100 to 200 weeks, since even in the rocket docket of the Eastern District of Texas, this case will take a couple years to get to trial and a verdict. But hey, why worry about "facts" when you can just complain about the patent system, right?







