An Ohio-based firm known as Impulse Technology is suing Microsoft with the claim that they created the technology found in the Kinect first. According the the firm, Microsoft's camera-based controller is in violation of seven patents.
The patents are said to include a "wide variety of games where the movement of a player is tracked in three dimensions…and certain exercise games where the motion of the player is tracked to effect movement of a virtual avatar, and the exertion of the user is monitored, including where the tracking of the player is done by the use of a camera."
If this is true and Impulse can back up these claims, Microsoft will certainly have their hands full.
[SOURCE]