I really can't be arsed to read it all, but from what I did read, I think it goes something like this...
Game data is infused with some extra data that is only useful to spectators, and then sent to a broadcast program.
This program would then redistribute the data in such a way that anyone connecting to the server the broadcast program is running on could watch the game from various virtual cameras (just like you can spectating normally, except you can't interact with the actual game).
I should imagine you'd need the game content for this, otherwise this would probably fall under any one of numerous mass distribution visual media patents.
They aren't just talking about spectating in a game. They are talking about an entire system dedicated to spectating that uses a centralized broadcast server / network. i.e.
- LFS Server packs up game data and attaches some extra misc data.
- LFS Server sends this data to a broadcast server.
- Broadcast server then sends data out to any number of connected clients.
- Broadcast server may inform LFS server of number of conected 'spectators', or other spectator related data. (this was something else it mentioned)
In addtion, the patent covers similar systems that cover multiple games. (think gamespy where you could spectate)
Well... thats what I made of it anyway.
Scawen did mention, once upon a blue moon ago that he may implement a dummy client solely for spectating, but didn't mention anything about a dedicated broadcast server, so I don't think there is much to worry about, except for the fact that microsoft has yet another patent.