Company sues Microsoft over Xbox Live

Huh? PalTalk is attempting to sue Microsoft in Texas because Microsoft has Xbox Live users in Eastern Texas. Why is this bad? Because PalTalk is claiming that Microsoft's Xbox Live service infringes on two of their patents, 523 and 686 which bascially deals with server-group messaging. According to PalTalk, Microsoft is in somehow infringing on these patents. I wonder if this was a case of PalTalk simply not knowing what Microsoft's Xbox Live service was about until recently, or did they wait this long on purpose? So they could ensure that Microsoft had a good, integral component to their console business which would put Microsoft in a position in which they would be much more willing to negotiate. Hmmmm.

[arstechnica]
[press release]