I love how everyone thinks they invented online gaming. Reminds me of the drinking story I tell about inventing the whole caps-in-a-chat-room-means-you're-yelling thing. Remind me of that when you see me drunk and I'll tell you.

Just like my story, the story told by PalTalk Holdings sounds like bullsh*t. They are alleging that Microsoft's Xbox products infringe two of their patents, and call out Halo and the console itself. Gamasutra says that their patents relate to "controlling interactive applications over multiple computers." These patents were originally registered by MPath Interactive, a PC gaming service since sold to GameSpy, and later bought by PalTalk. 

PalTalk lawyer Max Tribble said "Microsoft had many meetings with MPath regarding their technology, and Microsoft found the technology to be very valuable."

Microsoft's lawyer isn't worried. He says that this is old junk, later bought by PalTalk for only $200,000. And they want $90 million? Furthermore, the technology only refers to dial-up tech. MS's lawyer also says that Microsoft did review the MPath technology, but decided not to use it.

"Microsoft decided to go in another direction and work with another company," he told the jury. "Obviously, this was upsetting to PalTalk and its employees."