14 DAY TRIAL // Everyone remembers the deal between Sony and Immersion Corp. on the rumble issue. The electronics giant had to pay some $22.5 million to Immersion in order to be allowed to incorporate Immersion rumble technologies into their PS3 and future Sony products. The thing is this deal was strongly connected to Microsoft as well. However, this time it's Immersion who's not living up to their end of the deal.
This piece of news coming straight from CNET clearly states that Immersion is not living up to its end of the bargain with the manufacturers of the Xbox 360, hence, a suit has been filed. As Immersion has settled on the rumble issue with Sony in March, they're getting their $22.5 million via twelve quarterly installments of $1.875 million. In exchange, Sony is of course allowed to incorporate Immersion's patented technology.
However, once they reached the respective settlement with Sony, they went and modified their 2006 annual report with a statement, saying that they're no longer obliged to pay MS anything related to their legal settlement with Sony, as 1UP reports. Here is the statement:
"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."
Microsoft got mad and filed today's lawsuit, claiming that the original agreement between the two parties actually required Immersion to pay Microsoft certain sums of cash, but only if a settlement with Sony was reached. And since this actual event occurred...:
"In the event that Microsoft were to prevail, the Company 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. See Note 9 for further discussion and details regarding Microsoft."
Both parties have been contacted, but neither commented on any aspects so far. Even though Immersion's starting to show their teeth, Microsoft isn't going to let them have a bite either. This is going to be one fierce fight.