While we were gearing up for an epic, The Firm-esque judicial showdown, it seems Microsoft has settled the lawsuit filed against it by PalTalk Holdings, who claimed certain components of Xbox Live infringe upon two of their patents. Neither company announced how much Microsoft forked over in the settlement -- we assume it was significantly less than the exorbitant $90 million in damages PalTalk was seeking. While we don't know the particulars of how money changed hands in the settlement, a Microsoft spokesperson confirmed it was an "amicable agreement," so it's pretty safe to assume that hugs were exchanged.

[Via CVG]
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This article was originally published on Joystiq.

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