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Turbine, Blizzard, SOE Named In Data-Sharing Tech Patent Infringement Suit
by Leigh Alexander [PC, Console/PC]
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September 16, 2009
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New York-based PalTalk Holdings, owner of several patents related to data sharing among connected computers, is once again targeting major video game publishers -- including Sony Online Entertainment, Turbine and Activision Blizzard -- in an infringement lawsuit related to technology used in multiplayer gaming.
Earlier this year, PalTalk settled a $90 million lawsuit against Microsoft under undisclosed terms, after alleging that Halo and the Xbox 360's multiplayer features violated its patents.
According to the Boston Globe, this concession on Microsoft's part now creates an additional challenge for other publishers in PalTalk's sights, since the settlement can now be viewed as a validation of PalTalk's patent rights.
PalTalk filed suit collectively against the publishers of Everquest, Lord of the Rings Online and World of Warcraft in the U.S. District Court in Marshall, Texas. A Boston attorney told the Globe that this particular district, a "plaintiff-friendly jurisdiction," is a popular stage for patent lawsuits.
At the crux of PalTalk's earlier suit against Microsoft were two patents PalTal purchased from MPath related to "controlling interactive applications over multiple computers." Challenging the $90 million suit, Microsoft had alleged the company only paid $200,000 for the patents.
MPath is best known for the MPlayer PC gaming service, which was later sold to GameSpy. MPath was also responsible for VoIP (voice over internet protocol) and video conferencing service HearMe, which PalTalk still operates.
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Obviously MPlayer was around before EQ1 was released, but why wait to slap this patent troll lawsuit on now if the MS one was settled out of court. Does settling out of court have any weight on future lawsuits?
Very interesting...I would think if no suits where filed within 7 years of something use the same or similar technology, no suit could be filed...but apparently I'm clueless on this stuff.
Period.
End of story.
Someone, please fix the US patent system and make it stop leaching creativity away from developers/engineers.
This is ridiculous. Unless they out and out stole the codebase almost line for line, this is a farce.
One of the things that I thought was incorrect with the story was that it said that Microsoft settled a $90 million lawsuit. Although the story does say that the terms were undisclosed, the story still implies that Microsoft might actually have paid out that much. I suspect that that is very far from what happened. It would not surprise me in the least that four days into the trial that Microsoft might have settled secretly for $0 down and $0 licensing going forward. Because even this would be a win for both companies. PalTalk gets to walk away saying that they won, that their patents were valid, and have a (dubious) precedent; Microsoft keeps quiet, gets to use/license the technology for free and all of it's competitors now have to worry about being sued, defending themselves and otherwise paying one way or the other just to stay in the game. Not to mention all those independents developers working away in their garages that might decide to no longer even bother.
Then of course, there is nothing stopping PalTalk from moving on to other sections on the Game Industry that uses online features in their games. Until the patents are invalidated, companies and individuals will have to defend themselves of buy PalTalk off. It's a self feeding cycle. Well, here is hoping that the settlement between PalTalk and Microsoft can be used in discovery (if this latest lawsuit makes it that far).
Now, with luck, all the above could be mute if the patents, 6,226,686 [http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetah
tml%2FPTO%2Fsearch-bool.html&r=1&f=G&l=50&co1=AND&d=PTXT&s1=6,226,686.PN.&OS=PN/
6,226,686&RS=PN/6,226,686] and 5,822,523 [http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetah
tml%2FPTO%2Fsearch-bool.html&r=1&f=G&l=50&co1=AND&d=PTXT&s1=5,822,523.PN.&OS=PN/
5,822,523&RS=PN/5,822,523] could be invalidated, and given the new climate towards software patents (Bilski [http://endsoftpatents.org/bilski] may not apply here), it might now be easier to have these patents reviewed and invalidated, or at least have their scope reduced and better defined. So, if you are interested, read them and look for valid prior art.
By the way, if you are interested in patents as they relate to software (and you should be), might I recommend the patent section [http://www.groklaw.net/staticpages/index.php?page=20050402193202442] at Groklaw as a good starting place.