Lucent Technologies has sued Microsoft for infringing Lucent's US patent for 'Adaptive Coding and Decoding of Frames of Fields of Video"?. Lucent has claimed that the XBOX 360's method of decoding MPEG-2 files violates the patent.
Video game patents have been hot news lately, with Immersion's $82 million win against Sony regarding the rumble feature in Sony's dual shock controllers, Atari's agreement to pay $300,000 to AVG to settle a lawsuit regarding AVG's patent for spherical panning, and Yahoo!'s lawsuit against Xfire regarding in-game instant messaging technology.
These cases are a good reminder that game companies can't always include standard techniques (such as 3D panning and zooming) or technology (such as force feedback) in their games and consoles, even if everyone else in the industry is doing it.
Coverage at http://www.shorl.com/gadrimelogrybo (Macworld)