Microsoft is being sued for USD 90 million over a copyright infringement case brought to bear by PalTalk Holdings.
A Texas court was told that the Halo franchise as well as both the original Xbox and Xbox 360 consoles infringed on patents concerning interactive applications over multiple computers, developed by MPath Interactive and later bought by PalTalk for USD 200,000.
According to Seattle PI, PalTalk lawyer Max Tribble told the jury that MPath was "a pioneer in the online video industry in the area of real-time, multiplayer online games."
"Microsoft had many meetings with MPath regarding their technology, and Microsoft found the technology to be very valuable," Tribble added.
Microsoft is refuting the claims as both incorrect and wildly inordinate considering the value of the patents.
The software giant's lawyer David Pritikin, explained that Microsoft did review the technology but chose not to purse it any further, saying that the patents in question concerned outmoded dial-up connections, adding "the patents don't cover the way the Halo games work."
"Microsoft decided to go in another direction and work with another company," he said. "Obviously, this was upsetting to PalTalk and its employees."
Pritikin concluded: "The patents aren't worth much, certainly not USD 90 million."
The trial in Marshall, Texas, is being held before US District Judge David Folsom and expected to last around two weeks.