Microsoft Sues Immersion for Alleged Agreement Violations

By Max Brenn
18:00, June 20th 2007
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Microsoft Sues Immersion for Alleged Agreement Violations

The Redmond giant is pissed off because the long lasting conflict between technology firm Immersion and Sony (which has determined the absence of the rumble technology in PS3’s SIXAXIS controller) is over.

Immersion has licensed its rumble technology to the two fierce rivals on the consoles market (Microsoft and Sony), and the tremor we all like when holding a PS2, Xbox or Xbox 360 controller is their creation.

However, due to some financial disagreements between Sony and Immersion, the rumble technology failed to be implemented in PlayStation 3’s controller. The whole spat ended last year with a $22.5 payment from Sony to Immersion.

Microsoft also had its troubles in the past with Immersion, being forced to pay $26 million to be able to license and integrate the rumble technology into the Xbox 360 controller.

However, a clause in the MS-Immersion deal stipulates that if Immersion settled their legal matters with Sony, then Microsoft stood to receive money from Immersion.

The agreement, available at this address, states that: "In the event that Microsoft were to prevail, the Company [Immersion] would be obligated to pay Microsoft a minimum of $15.0 million for any amounts received from Sony up to $100.0 million, plus 25% of any amounts over $100.0 million and up to $150.0 million and 17.5% of any amounts over $150.0 million."
 
Although the terms are quite clear, Immersion disagrees with Microsoft’s position, but is not yet certain it would win in court:

"The Company believes that it is not obligated under its agreements with Microsoft to make any payment to Microsoft relating to the conclusion of the patent litigation with Sony Computer Entertainment. However, it is uncertain that Microsoft will accept the Company's position or that the Company will ultimately prevail with its position."



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