Xfire announced today it has filed an answer and countersuit in United States District Court in response to a lawsuit filed by Yahoo Inc. In today's filing Xfire refutes all allegations that it is infringing Yahoo's patent. In addition, Xfire has filed a countersuit stating that the Yahoo lawsuit is an attempt to drive Xfire out of business (and therefore avoid direct competition in the marketplace) or to force Xfire to sell or license its proprietary technology to Yahoo for far less than fair market value to settle the expensive litigation.