Is the Xbox 360 at risk? Lucent's suit against Microsoft, filed last month, accuses the software and hardware giant of violating a patent relating to the MPEG-2 codec. This could potentially mean game over for MS since DVD movies and some in-game cut scenes are encoded with in MPEG-2 format. According to a partner with a law firm that focuses on IP Law, Lucent may have a stronger case than NTP did against Research in Motion. RIM recently paid over $600 million in its settlement to NTP.
So what does this mean for Xbox 360 owners? Well, not much right now. These types of cases could take up to two to three years to hit the trial phase. Plus, like RIM, Microsoft would much rather settle with Lucent than to let its next generation gold mine be pulled off the market.
Could a Patent Lawsuit Stop the Xbox 360? [PC World]