You read that right, Microsoft is being sued by a company named Terminal Reality over a patent infringement. Terminal Reality is a Texas-based development company which was shut down later in 2013. They have been the developers behind games like Kinect Star Wars, BloodRayne series, Walking Dead: Survival Instinct and Ghost Busters: The Video Game. They are known for their Infernal engine which they have been using in the development of the above-mentioned titles.
Microsoft had signed patents with Terminal Reality and Infernal Technologies for using their gaming engine in the development of titles like Sea of Thieves. Unfortunately, the developers at Terminal Reality claim that Microsoft has been using lightning and shadowing methods that had been patented in the contract. They’ve been utilizing them in the titles like Gears of War 4, Halo 5, Forza Motorsport 6, Quantum Break and of course, Sea of Thieves. How it really works when a company (i.e. Microsoft) seeks the permission to use the gaming engine of another company (i.e. Terminal Reality) is, that they can forbid them not to use certain effects and techniques under certain circumstances. In case such a pact is not followed as it is, then they might be in trouble (which Microsoft seems to be in the current scenario).
They also claim that Microsoft had been trying to breach such points of the contract over the years but was denied. In the end, they decided to take the charge and make the amendments themselves that well- suited their requirements and didn’t hesitate at all. If Microsoft really is guilty of breaking the rules, then they might be in big trouble and have to pay big bucks to Terminal Reality. Let’s hope the complications get resolved between both the parties for the better.