We at Gamedibs.com have learned that the recently announced OnLive service was issued a lawsuit last week on behalf of Microsoft due to name and copyright infringement.  The suit states that the OnLive Service”too closely resembles the name and look” of the Xbox Live service and that “many of the functions used also too closely resemble that of copyrighted functions used by Xbox Live”.  The lawsuit was issued this past Thursday and as of today the lawsuit has now been dropped.  According to sources the lawsuit has been dropped in favor of a buyout opportunity.  Microsoft is now looking to acquire the OnLive service and use it in an as-of-yet undisclosed capacity.  We will keep you up to date on this breaking news.