14 DAY TRIAL // PalTalk Holdings, a New York company that claims to be holding several patents that are related to how data is shared amongst connected computers, has filed a law suit against major video-gaming companies like Sony Online Entertainment, Activision Blizzard and Turbine, saying that they infringe on its property by implementing their multiplayer gaming mechanics.
The suit was filed with a United States Districut Court in Marshall, Texas. Apparently, the court is known for being rather friendly with plaintiffs. Sony Online Entertainment, Turbine and Activision Blizzard are specifically named in the documents filed because of their work on MMOs like Everquest, Lord of the Rings Online and World of Warcraft. It's not known what amount in damages PalTalk is aiming to acquire through the legal action.
PalTalk is not on the first legal battle with big, video-game companies. Last year, the company went up against Microsoft, alleging that the multiplayer protocols in the Halo series and those implemented in the Xbox 360 home gaming console were infringing on its patents. The company asked for 90 million dollars in reparations, but Microsoft settled for a sum of money that was not disclosed. The settlement is seen now as being a misstep that allows PalTalk to sue other companies on the same basis and basically legally blackmail a whole industry.
The patents in question are apparently only worth about 200,000 dollars, as this is the price for which they were acquired by PalTalk from Mpath. The company also bought a service called HearMe, which allows for video conferences to be conducted.
It will be interesting to see how Sony, Turbine and Blizzard react to the suit and if they plan to settle like Microsoft has done. On the one hand, this will limit their exposure to negative effects that could affect their business. On the other hand, settling might open the door for even more law suits.