Microsoft Sues Immersion over Sony Deal

Jun 19 2007, 1:20pm CDT | by Shane McGlaun

Right on the heels of Immersion settling with Sony on rights to use Immersion rumble technology in Sony PS3 controllers comes news that Microsoft is suing Immersion for breach of contract over allowing Sony to license Immersions technology.

It seems that Microsoft and Sony had an exclusive contract allowing Microsoft to use rumble technology, excluding other console makers. A quote from DailyTech reads, "We entered into a binding licensing agreement with Immersion and are seeking to have that agreement honored," Microsoft Associate General Counsel Steve Aeschbacher said to CNET 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."

"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."

Naturally, Immersion feels that the Sony settlement triggers none of the payment clauses in the Microsoft contract. On the other side, Microsoft feels they are entitled to a payment of a whopping $27.5 million dollars. I have to wonder if this could rain on Sony’s PS3 rumble parade somewhere down the road. Via DailyTech

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