Microsoft files suit against Immersion
Remember Immesion, the company that sued Microsoft and Sony for having rumble in their controllers? Well, Microsoft was the first to settle, followed by Sony this year. However, it seems the problems aren’t over: Microsoft is now claiming that Immersion has violated a previous agreement with the company when it dropped pending litigation against Sony and entered into a business relationship with it earlier this year.
CNET reports that the root of the problem lies in Microsoft’s agreement with Immersion: in the settlement Immersion agreed that it would pay Microsoft a minimum of $15 million in the event it received settlement funds from Sony as well; the exact amount was to be determined by the total of Sony’s payment.
Microsoft received no such payment when Sony and Immersion settled their differences.
“The Company has determined that the conclusion of its litigation with Sony Computer Entertainment does not trigger any payment obligations under its Microsoft agreements,” states Immersion’s latest quarterly filing. “However, in a letter sent to the Company dated May 1, 2007, Microsoft disputed the Company’s position and stated that it believes the Company owes Microsoft at least $27.5 million. If Microsoft brings a lawsuit to further dispute the Company’s position, the Company intends to oppose Microsoft’s claims and vigorously defend the Company’s position.”
“We entered into a binding licensing agreement with Immersion and are seeking to have that agreement honored,” explained Microsoft associate general counsel Steve Aeschbacher. “Microsoft licenses technology both in and out and relies on these agreements to be honored and enforced. Our request to the court is that all companies and industry partners should play by the same rules and that the binding agreement we signed with Immersion be honored.”
The ball rolls on…