The claim seems interesting, but I doubt that there will be anything to uphold its validity in court. The concept that three dimensional avatars that interact on a virtual plane is somehow capable of being patented will potentially cripple not only MMORPG's such as City of Heroes/Villains, but it could also potentially crush all forms of online interactive media such as: Left 4 Dead, Street Fighter, etc...
I would imagine that the courts will deem this definition far too broad for the patent to be upheld, and it will be simply dismissed. Not only that, the company apparently holds patents in regards to various other digital media including video display and control:
"A method and system provides a face-to-face video conference utilizinga video mirror. The method and apparatus comprise a first stationhaving a first predetermined sensory setting; a second station having asecond predetermined sensory setting; and an imaging system forcapturing an image or sub-image at the first station, displaying atleast a portion of the image or sub-image at the second station suchthat it becomes generally visually integrated with the secondpredetermined sensory setting. Also, disclosed is apparatus and methodfor effecting a face-to-face presence environment regardless of whetherthe first and second predetermined sensory settings are the same ordifferent. The stations may be portable and/or modular such that theycan be easily constructed or assembled. The stations may also bearchitectured and/or decorated to further enhance the face-to-faceenvironment created by the video conferencing system and method."
Beyond that, the company had apparently planned various alterations of these patents to be able to claim some form of legal holding over companies that had been constructing various uses of over-the-internet digital media,
"A network-based animated electronic meeting place is provided forbusiness meetings, education, simulated classrooms, casual encounters,personal meetings, art auctions, parties and game playing, whichincludes a terminal for each participant on the network and localprestored animation graphics, with simulated participants in the formof animated characters or dolls being driven through sensing of each ofthe participants at their respective work stations, including theirposition, posture, gestures, audio content and optionally that personawhich each individual wishes to be displayed at the animated electronicmeeting place. In one embodiment, a user chooses how he representshimself on the screen through the use of a Persona or Charactercontrol. The animated electronic meeting place is provided with realtime 3-D graphics renderings, showing the meeting with all of theparticipants including the individual participant as himself, amicrophone to capture the user's speech,..."
So, it's quite obvious this company is creating vague patents to assault prospective new markets in an attempt to gain benefit where no damages are due.