Microsoft settled a lawsuit with Paltalk Holdings in March 2009 over mutliplayer gaming elements used on Xbox Live that were said to violate Paltalk's patents. This makes things more challenging for other companies that, according to the Boston Globe, were sued today by Paltalk.
The complaint by the New York company was filed in Marshall, Texas. “The eastern district of Texas is considered a plaintiff-friendly jurisdiction,’’ said Christopher Donnelly, a partner at Donnelly Conroy & Gelhaar LLP in Boston.
The problem with the Microsoft settlement is that it gives tacit approval to the Paltalk patents in a court of law, giving them the upper hand in all future legal battles involving the patents. This time, Turbine, Sony Online Entertainment, Activision Blizzard, NCSoft and Jagex are in Paltalk's sights.
Once again, we have another case of an overly general patent being used against companies which have been using the technology for years. It's another example of how the U.S. patent system needs to be revised.
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