Microsoft's online gaming service was launched back in 2002 and has allowed gamers from across the world to join this multiplayer experience from the comfort of their own homes. The service has been praised for it's smooth online play, excellent lobby systems and superb interface.

Online video chat company Paltalk Holdings Inc have stepped forward to claim that Microsoft's live service infringes on their patent entitled '"Server Group messaging for interactive applications". Paltalk are hoping to claim substantial damages and an injunction to prevent Microsoft continuing with the service. Their patent covers a wide part of networking and online gaming and analysts are predicting that Paltalk have little or no chance of winning the case.

If you're interested to read more, here's the patent.