Activision to Pay $23.4M Due to Loss in Patent Infringement Suit

Microsoft's gaming sector appears to be in a storm of challenges, with the fresh news of Xbox imposing more cuts following the shutdown of four studios, and now Activision Blizzard on the hook for a $23.4 million patent infringement payout.

Reuters reported on May 6 that a Delaware federal jury ruled that Activision Blizzard owes $23.4 million in damages for infringing patents related to the multiplayer features in its blockbuster games — World of Warcraft, Call of Duty: Black Ops III, and Call of Duty: Advanced Warfare.

The gaming giant has lost a long-standing nine-year patent infringement lawsuit to tech incubator Acceleration Bay, which initiated the legal action in 2015.

The dispute revolved around two patents related to the technology enabling the "simultaneous sharing of information" across multiple computers. Activision Blizzard refuted Acceleration Bay's claims, asserting that its technology functions differently and does not infringe the patents in question. 

However, the jury decided that Activision should pay $18 million for the infringement related to World of Warcraft and an additional $5.4 million for the infringement associated with the Call of Duty games.

Reacting to the verdict, an Activision spokesperson stated, "While we are disappointed, we believe there is a strong basis for appeal," adding, "We have never used the patented technologies at issue in our games."

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