Microsoft sues Immersion for contract breach

  • By Ina Fried, News.com
  • Posted Jun 18, 2007 2:41 pm PT

Xbox 360 maker takes rumble provider to court for not keeping up its end of the deal in settlement of a previous suit.

From News.com

Microsoft said on Monday that it has filed suit against Immersion, a company whose technology adds tactile feedback to joysticks and other controllers.

Immersion had originally sued Microsoft, along with Sony, back in 2002, but the two companies reached a settlement in 2003. Under that deal, Microsoft agreed to pay Immersion $26 million for licensing rights and for a stake in the company. However, Microsoft said Monday that Immersion has not lived up to other terms of that deal, including a provision that requires Immersion to pay Microsoft "based on certain business and IP licensing arrangements."

"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."

An Immersion representative could not immediately be reached for comment.

News.com's Stephen Shankland contributed to this report.

175 Comments

  • Reetesh

    Posted Jun 19, 2007 11:14 pm PT

    MS got sued and it wanted a stake in the company?

  • fr33_loader

    Posted Jun 19, 2007 10:15 pm PT

    Maverick128 Sony should pay the 26 million back to MS for Immersion, buy them out and restrict MS from continuing to use rumble tech in their controllers. God that would be great.

    Maverick128 And before you say it, yes I am a Sony fanboy and damn proud of it. There's nothing wrong with supporting the company that really got me into gaming and that still keeps my attention even at 25.
    -------------------------
    Sigh. And this statement came from a 25 year old? I wonder what the gaming world is turning into. Pathetic.

  • zakkss

    Posted Jun 19, 2007 5:46 pm PT

    The empire strikes back.

  • ShawnD2656

    Posted Jun 19, 2007 3:26 pm PT

    elvisapresley

    "here's a blog that sheds some light on the actual breach MS is suing about.
    http://blog.seattlepi.nwsource.com/microsoft/archives/116859"

    That was pretty interesting how Sony and Immersion tried to get around that agreement...frankly if I was any lawyer I would probably be sharpening my teeth ready to go after this one.

  • Unknown_Legend

    Posted Jun 19, 2007 3:25 pm PT

    Isn't this a great case of irony. Immersion sues Microsoft and Sony, MSofts uber lawyers cut a deal to make them money, then Immersion breaks the deal, now they are going to get their heads handed to them by MS's legal team. Those guys are monsters, I'm surpised they don't have their own game yet where they turn into unstoppable monsters at will.

  • visionary

    Posted Jun 19, 2007 3:16 pm PT

    Microsoft's agreement with immersion was that they'd get a piece of the pie if Sony were to loose their case, now they want the money that was promised to them. It kinda makes me sick but that's business

  • puppiemaster

    Posted Jun 19, 2007 2:45 pm PT

    Never thought I'd say it but "GO MICROSOFT"

  • Sheiko

    Posted Jun 19, 2007 2:42 pm PT

    If Immersion actually did accept the agreement which clearly states if they join Sony in anyway they must pay a hefty Million dollar sum that may reach billions then they really do deserve the lawsuite.

  • Pedro7_2000

    Posted Jun 19, 2007 2:35 pm PT

    Immersion FAILS. They should lose, but the world isn't always fair (especially in law cases).

  • d_black

    Posted Jun 19, 2007 2:00 pm PT

    Lelio316 :

    So MS pays 26 Million, then wants 27.5 Million back...and it's Immersion that got greedy?

    -----

    Welcome to big business. If you win $X and you don't honor your agreement then you deserve to lose it and more.

  • Lelio316

    Posted Jun 19, 2007 1:54 pm PT

    "Back in 2003, Immersion got lucky. They were given 26 million dollars and then they were allowed to still make rumble packs for every controller sold. They should have stuck to their end of the deal, but they got greedy, again. Not that Microsoft isn't rich enough, but they gave Immersion a decent deal back in 2003, now its time for them to get what greedy people deserve, a beating. Take it to em' Xbox. Ha Ha"

    So MS pays 26 Million, then wants 27.5 Million back...and it's Immersion that got greedy?

  • elvisapresley

    Posted Jun 19, 2007 1:41 pm PT

    here's a blog that sheds some light on the actual breach MS is suing about.
    http://blog.seattlepi.nwsource.com/microsoft/archives/116859.asp

  • KingTuttle

    Posted Jun 19, 2007 1:40 pm PT

    Translation - Sony is finally getting rumble back. Immersion is/will be making money from that competitor and MS wants to get PAID. No shocker there. This is business.

  • Aromon

    Posted Jun 19, 2007 12:41 pm PT

    Back in 2003, Immersion got lucky. They were given 26 million dollars and then they were allowed to still make rumble packs for every controller sold. They should have stuck to their end of the deal, but they got greedy, again. Not that Microsoft isn't rich enough, but they gave Immersion a decent deal back in 2003, now its time for them to get what greedy people deserve, a beating. Take it to em' Xbox. Ha Ha

  • imnotacrook

    Posted Jun 19, 2007 12:30 pm PT

    this is so stupid, I can't wait till someone stops this BS about the Ruble.

  • Rariv

    Posted Jun 19, 2007 12:15 pm PT

    Microsoft was just waiting for the right oportunity to get those $26 million back, and maybe some more.

  • antamania

    Posted Jun 19, 2007 11:49 am PT

    Wow this just blows my mind. Immersion is getting sued by microsoft........... and not the other way around. wow

  • StonyShred420

    Posted Jun 19, 2007 11:32 am PT

    Yeah go Team Microsoft Lawyer! Stick it to them good! I

  • iliyun

    Posted Jun 19, 2007 11:08 am PT

    YAAAaaaaah. Take it Immersion. Take it !!!! u wanna play anal? it comes right back at you. i bet Immersion has to pay licensing fees to use Microsofts Operating Systems. ...... HEY Immersion what goes around COMES AROUND !!!!!! ..... suffer some loss suckaz

  • Chirico_Cuvie

    Posted Jun 19, 2007 10:20 am PT

    It sounds like these Immersion people are real a-holes. They fought for their rights and won, good for them. Now it's like they want to be difficult and drag their feet to comply, simply because they thought to patent something as simple as an off-centre weight spinning to create vibration; and these huge companies have to go to them every time to include it. I bet Sony and MS grit their teeth every time they have to write a check to those guys. I'm going to patent sticking a fan on the TV and call it "wind feedback", maybe they'll use it next time.

  • Lostfile

    Posted Jun 19, 2007 9:45 am PT

    As long as I get to go home at the end of the day and use my controller with force feedback, I'm fine with what Microsoft is doing.

  • kenshinhimura16

    Posted Jun 19, 2007 9:26 am PT

    Karma strikes back?

  • batosaisilver

    Posted Jun 19, 2007 8:04 am PT

    interesting.

  • mattbirdy

    Posted Jun 19, 2007 7:49 am PT

    i own a 360 and a wii and well everything except a psp and ps3 but i wont buy a ps3 till rumble is bk motorstorm isnt as much fun without the rumble and live is better then the free sony online service ......(and to sort this out b4 u all label me im not a fan boy cus i still have my ps1 and saturn n64 nes and DC and my xbox )

  • mattcake

    Posted Jun 19, 2007 7:29 am PT

    Its a pretty slack company that has the balls to take $26m of Microsofts money, and then not expect them to pedantically expect every part of the contract fulfilled to the letter. I'm sure MS have been waiting for their chance to sue back, who wouldnt? MS may be a big cash cow that buys its way out of trouble a lot, but if you let people take advantage of this, you get Michael Jackson syndrome (people with begging bowls who want paying off to keep quiet)

  • littlestreakier

    Posted Jun 19, 2007 7:28 am PT

    doesn't suprise me that microsoft is suing. Immersion broke the contract and now they are being taken to court, i'm sure they saw this coming while they were breaking the contract.

  • Yuck_Too

    Posted Jun 19, 2007 6:53 am PT

    LOL...it's the MS double standard.

    If MS sold the 360 for a $200 loss like Sony sells the PS3, MS would also be sued for unfair business practices, again.

    But if you take advantage of MS it's ok? One thing is for sure...MS does not throw around frivolous lawsuits so you can be really certain they have a case.

  • Bane_v2

    Posted Jun 19, 2007 6:42 am PT

    So uh... what part of the agreement is Immersion allegedly not honoring? This news item is pointless without that key bit of info.

  • KronikKilla

    Posted Jun 19, 2007 6:28 am PT

    Uhhh... what? MS would love Sony to have rumble, that means more money for MS, since they have a stake in Immersion now.

  • chrisdojo

    Posted Jun 19, 2007 5:18 am PT

    who isn't suing microsoft and who is microsoft not suing? this isn't news worthy...

  • lobobizarro

    Posted Jun 19, 2007 4:52 am PT

    "Dreski83 wrote:
    sounds like a classic example of "our lawyers are better than yours"... really wish all this law suit stuff would go away "

    Maybe, MAYBE, when Jack Thompson dies.

  • Brent330

    Posted Jun 19, 2007 4:30 am PT

    Once again Microsoft always wins.

  • Anabub

    Posted Jun 19, 2007 4:26 am PT

    Maverick128 " In fact I wouldn't mind seeing some sort of collaboration between the big N and Sony. Nintendo occasionally makes games worth playing. "

    Um didn't SONY and the Big N do that before when N wanted to incorporate CD technology but that broke down and SONY created the PS1??

    Anyway back on topic got to agree this he said she said lawsuit mentality needs to get sorted out ... after all we are paying for thses lawyers to battle it out one way or another!

  • Dreski83

    Posted Jun 19, 2007 3:42 am PT

    sounds like a classic example of "our lawyers are better than yours"... really wish all this law suit stuff would go away

  • Maverick128

    Posted Jun 19, 2007 2:53 am PT

    "Note the sarcasm - I figured that if you were capable of making a comment that stupid, you would need a bit of a hint."

    i suppose a Wii fanboy (I saw your posting history) would feel that way because anyone who doesn't forward the agenda of the great Nintendo DVD remote is stupid. I never said they had to restrict Nintendo from using it. In fact I wouldn't mind seeing some sort of collaboration between the big N and Sony. Nintendo occasionally makes games worth playing.

    And before you say it, yes I am a Sony fanboy and damn proud of it. There's nothing wrong with supporting the company that really got me into gaming and that still keeps my attention even at 25.

  • AncientDozer

    Posted Jun 19, 2007 2:49 am PT

    Sony is losing enough money as is, Maverick. I don't think that's going to happen. Besides, you were probably one of the people booing at Immersion for suing. Now you're going to flip flop? I call bull.

    In this case, I can honestly say in Microsoft's place. . "Right back at'cha!" or "We'll take our money back."

    And I agree. Microsoft is playing the "game" of business and doing it right. I say kudos. Immersion wanted to play and break the rules? They get what's coming.

  • alexgangur

    Posted Jun 19, 2007 2:43 am PT

    "Sony should pay the 26 million back to MS for Immersion, buy them out and restrict MS from continuing to use rumble tech in their controllers. God that would be great."

    Oh god yes. A monopoly on rumble technology would be fantastic.

    Note the sarcasm - I figured that if you were capable of making a comment that stupid, you would need a bit of a hint.

  • Maverick128

    Posted Jun 19, 2007 1:36 am PT

    Sony should pay the 26 million back to MS for Immersion, buy them out and restrict MS from continuing to use rumble tech in their controllers. God that would be great.

  • Sam_Lowery

    Posted Jun 19, 2007 1:18 am PT

    When is that rumble 2.0 controllers coming out where you can pops and pings in addition to rumble?

  • TTDog

    Posted Jun 19, 2007 1:13 am PT

    "Windblade91: call me a fanboy buuut....i smell MS not wanting a DualShock/SixAxis controller for Sony"

    You are a fanboy.

  • Rentago

    Posted Jun 19, 2007 1:09 am PT

    lol i love how nubcakes always talk crap about microsoft, it hasn't done anything bad.

    If your mad about them making smart moves, man your have some issues.

  • imprezawrx500 posted Jun 19, 2007 12:21 am PT (does not meet display criteria. sign in to show)

    imprezawrx500

    Posted Jun 19, 2007 12:21 am PT (hide)

    M$ is nothing but a gready cow. they don't need any more money. They own the pc world and their next target is the gaming world, so they are trying to get rumble exclusive to their system to help them take over, if they take over there go all the good games that come from cometition.

  • xcollector

    Posted Jun 19, 2007 12:17 am PT

    Well, It looks like Immersion is going to have to give MS their $26 Million back.

  • SythasVC

    Posted Jun 18, 2007 11:01 pm PT

    Immersion is like the leech of the industry. They happened to patent something that became a standard and now they are just leeching of it, not really bringing anything new to the table.

  • snarple_basic

    Posted Jun 18, 2007 10:44 pm PT

    Wow kind of funny sony gets there a$$ handed by immersion but Microsoft turns the tables on Immersion.... Guess we know who has the better lawyer team lol.

  • PacoL250

    Posted Jun 18, 2007 10:25 pm PT

    ::sigh::

    Again, another settlement will happen out of court, so this isn't a big deal anyway...

    Typical legal saber-rattling

  • sigma8

    Posted Jun 18, 2007 10:09 pm PT

    lamprey263: I wouldn't worry about MS gaining a monopoly. Let's see them make a profit first, then we'll start to worry about another anti-trust suit.

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