Paltalk is in NY and it's some Texas law that allows some loophole in the patent system, I'm sure. It has nothing to do with the geographic location of either company.
@sueco: I'm not one for the input lag, though, which there seems to be a lot of. I've noticed it's not on my machine because I can disconnect my ethernet from the computer and have my character completely stop while I try to move him meaning it's more of a computational load on the servers. But past that point, I really like the game, it's just a hard hurdle for me to jump over if I am going to get this game.
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