Paltalk says it has settled suit with Microsoft

Messaging company says that it has settled a suit with Microsoft, which has taken a license to Paltalk's patents and is paying an undisclosed amount of money.

Group messaging company Paltalk said on Thursday that it has reached a deal with Microsoft to settle a patent dispute.

As part of the deal, Microsoft has taken a license to Paltalk's patents and is paying an undisclosed amount of money, Paltalk said in a press release.

"After litigating with Microsoft for over two years to protect our intellectual property, it is gratifying to resolve this matter with Microsoft taking a license to Paltalk's patents," said Jason Katz, founder and CEO of Paltalk.

Paltalk filed its suit against Microsoft in September 2006, alleging that Halo 2 and Halo 3 running on Xbox Live violated Paltalk's patents. Paltalk said the case involved two patents that were originally filed in 1996 by MPath Interactive and acquired by Paltalk in 2001.

The case against Microsoft went to trial in March, Paltalk said, with a settlement reached on the fourth day of the case.

Microsoft declined to comment on the settlement. However, a source close to the company said the settlement was approved by the court last month.

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