Intellivision's Bruce Adams, Paul Hoffman, and John Daniels, inventors of Microsoft's Ultimate TV system, are suing Microsoft for allegedly "misleading" them during negotiations involving the purchase of their interactive television patents. The three said Microsoft assured them that it "only wanted the patents for defensive purposes only, and that they will not use the patents and launch a DVR system".

Intellivision then gave the license to Microsoft in 2001, but "one week after the agreement, Microsoft launched an advertising campaign for its Ultimate TV product," according to the lawsuit that the inventors filed against the software giant. They are asking that the original agreement, which notably does not include royalty payments, be nullified and that Microsoft pay damages.

Microsoft has not given a formal response to the lawsuit as of this moment.