Microsoft sues Immersion for contract breach

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

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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.

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