Microsoft sue Immersion
It's payback time for Microsoft who have turned full circle on Immersion games, the company that sued Microsoft and Sony in 2003 for infringing on their haptic technology patent by using it in their force feedback joysticks. Microsoft settled out of court paying $26 million to Immersion for the licensing fee for the technology and a stake in the company, but now Microsoft are suing Immersion for allegedly not sticking to the deal that was originally made.
"We entered into a binding licensing agreement with Immersion and are seeking to have that agreement honored," Microsoft Associate General Counsel Steve Aeschbacher said in a statement. "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."
It appears that a clause in the agreement signed between Microsoft and Immersion states that if the company settled with Sony then Microsoft would receive money back from the deal.
"In particular, it provides that if Immersion settles the Sony Lawsuit ... for an amount up to $100,000,000, Immersion shall pay Microsoft the sum of $15,000,000. If Immersion settles the Sony Lawsuit for an amount between $100,000,000 and $150,000,000, Immersion shall pay Microsoft an additional amount equal to 25% of the amount of the settlement in excess of $100,000,000. If Immersion Settles the Sony Lawsuit for an amount in excess of $150,000,000, Immersion shall pay Microsoft an additional amount equal to 17.5% of the amount of the settlement in excess of $150,000,000."
Immersion did settle with Sony, so Microsoft are now after their money, but Immersion aren't prepared to pay up claiming that the deal struck between themselves and Sony wasn't a 'settlement' but was merely a 'business transaction'.
"The Company has determined that the conclusion of its litigation with Sony Computer Entertainment does not trigger any payment obligations under its Microsoft agreements. 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."
Immersion are yet to come forward for comment.
