Microsoft Sues Immersion Over Rumble Deal
Waaay back in 2003, Microsoft settled with Immersion over the rumble technology found in their Xbox game controllers. Now, Microsoft is filing suit against Immersion, claiming that the company has not paid Microsoft 'based on certain business and IP licensing arrangements.' CNet has the release, and links over to a Seattle PI blog entry with some investigative digging by Todd Bishop. "One provision of the Microsoft-Immersion settlement wasn't reported widely at the time, if at all: Microsoft negotiated rights to a payment from Immersion -- a refund, of sorts -- if Immersion settled its case with Sony ... Here's where the new dispute arises: On March 1, nearly four years after the Microsoft settlement, Sony and Immersion announced that they had 'agreed to conclude their patent litigation at the U.S. Court of Appeals for the Federal Circuit and have entered into a new business agreement to explore the inclusion of Immersion technology in PlayStation format products.' ... while Immersion and Sony have agreed to conclude their patent litigation, they don't use the word 'settlement,' describing it instead as a business agreement."
I agree 100% with you.
I'm no U.S. law expert, but I thought that Microsoft gained something like 20% shares of Immersion during their agreement too. If so, Microsoft should be entitled to part of the settlement between Immersion and Sony... This settlement becomes "profits" for Immersion to which Microsoft is entitled an amount at LEAST based on their number of shares.