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Microsoft in $90m Xbox Live lawsuit

Online chat company goes for gold

Microsoft is being sued by online chat company Paltalk Holdings over functions of Xbox Live it says infringes on its patents.

For infringement claims on two Paltalk patents (numbers 5,822,523 and 6,266,686 if you're interested) the company is demanding monetary compensation of $90 million (£65m), according to Seattle PI.

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Apparently Paltalk's technology covers a number of aspects of online communications, including "gaming communications through a group message server to maintain a consistent environment for all players, as well as establishing groups for online game play."

Microsoft claims it had meetings with the patents' creator but after studying its technology decided to take a different direction in the development of Xbox Live's tech.

Microsoft is set to begin trial shortly in East Texas.

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