Two-and-a-half years ago, online communications company PalTalk announced it would be suing Microsoft for infringing on two of its online gaming patents. PalTalk claimed that Halo's online component and the Xbox and Xbox 360 consoles themselves clearly infringe on technology relating to "controlling interactive applications over multiple computers" which was developed by MPath Interactive, then acquired by PalTalk Holdings for a sum of $200,000.

Recently, PalTalk decided to move foward with the case, and is attempting to seek $90 million in damages from Microsoft for the "tens of millions of dollars" the company lost as a result of Xbox Live's online offerings. PalTalk lawyer Max Tribble claimed Microsoft met with MPath to look at their online gaming technology, and "found the technology to be very valuable." Afterwards, they supposedly yoinked it.

Microsoft's lawyer, David Pritkin, confirmed the company met with MPath, but decided to "go in a different direction and work with a different company," which he says upset PalTalk, and could be one of the main reasons for the suit. He added that the patents aren't incredibly valuable, and that the $90 million in damages sought by PalTalk is a fairly exorbitant sum. The trial is set to take place in a U.S. District Court in Marshall, Texas, with a verdict likely to surface in the coming weeks.