updated 03:45 pm EDT, Fri September 15, 2006
MS sued over Xbox Live
Paltalk, which claims it "services the largest online video chat community on the internet [sic]," has decided to sue Microsoft over technology used in Xbox Live. The company alleges that Live violates two US patents: 5,822,523 and 6,226,686, which relate to "gaming communications through a group message server to maintain a consistent environment for all players, as well as establishing groups for online game play." The suit was filed in the US District Court in the Eastern District of Texas. It has little chance of succeeding however, because Xbox Live is almost four years old, and Microsoft would likely settle out of court before giving up a significant source of revenue.