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Microsoft sues Immersion

Microsoft sues Immersion

"I lost, so pay me some of what they lost!" - Microsoft wants to collect $15m from the Sony suit.

Sometimes, something is so strange that you just have to think for a minute to wrap your head around it. First, Immersion develops force-feedback controllers. Sony and Microsoft use the technology in their systems. Immersion sues both. Microsoft settles for $26m, but Sony fights and loses for $90m. With me so far? Seems easy, right? So why is Microsoft now suing Immersion?

Because Immersion won against Sony.

In a soap-opera like twist, apparently Microsoft made an interesting deal with Immersion when it settled. When MS forked over the $26m, it entered into a contract - if Immersion then won its suit against Sony, MS would recoup $15m of that $26m. Apparently, Immersion isn't thinking it's such a great deal now, but it was quite eager at the time.

And it doesn't even stop there - Microsoft is now accusing Immersion of lying about the amount of the settlement with Sony (which was done behind closed doors), choosing a ticket price below $100m. Why, one might ask? Because apparently Microsoft was due an extra "kicker" if the victory over Sony crossed the $100m threshold.

Nobody is really sure exactly why a deal like this would take place, but there are certainly some ideas that I've come up with. You'll see them soon enough - but for now, why don't you tell us some of your own theories in our forums.

15 Comments

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C-Sniper 20th June 2007, 14:27 Quote
How Ironic. Someone looses(technically since they settled out of court) and now they want money from the win of the other loser.
Hells_Bliss 20th June 2007, 14:38 Quote
well, if they were smart enough to sign a contract with that built in, and immersion was stupid enough to sign it, then sure I can see this happening. MS will win too.
mctigger 20th June 2007, 14:49 Quote
im just wondering, if immersion settled out of court, and the deal they made with microsoft was if they won, which indicates to me in court, they get the payement, but as immersion and sony settled out of court, microsoft shouldn't get anything. well thats how i read it from what i have seen.
cjmUK 20th June 2007, 14:59 Quote
Quote:
Originally Posted by mctigger
im just wondering, if immersion settled out of court, and the deal they made with microsoft was if they won, which indicates to me in court, they get the payement, but as immersion and sony settled out of court, microsoft shouldn't get anything. well thats how i read it from what i have seen.

That's why we have courts and lawyers...so we can argue a lot over what seems to be straight-forward. *Everything* is open to interpretation.
mctigger 20th June 2007, 15:08 Quote
yeah i know, but was just making my point, nothing is straightforward these days :( lol
completemadness 20th June 2007, 15:48 Quote
lol so now Sony sue for uncompetitive business practises, and everyone gets their money back, gg :D
Spacecowboy92 20th June 2007, 16:55 Quote
What an odd and complicated deal to make. Why dident Immersion just say give us the money, no frills.
Hells_Bliss 20th June 2007, 17:04 Quote
because they weren't sure they were going to win against sony? i dunno
Amon 20th June 2007, 17:28 Quote
TheVoice 20th June 2007, 17:42 Quote
Quote:
Originally Posted by Amon


Megasoft needs to get lost.

They have every right to defend the contract. Any company could have done the same thing.
SNIPERMikeUK 20th June 2007, 21:54 Quote
I only wish i thought of that....I mean motors in pads who ever thought it.
Constructacon 20th June 2007, 23:34 Quote
Quote:
Originally Posted by SNIPERMikeUK
I only wish i thought of that....I mean motors in pads who ever thought it.
Immersion did. Then made a bundle off it ;)

Microsoft are justified here. Immersion should never have signed that contract. Idiots.
Tyinsar 21st June 2007, 00:40 Quote
To me the deal Immersion & MS made sounds a little fishy:

Immersion: We want money from you but we'll cut you a deal if we get more from Sony.
MS: hmm, pocket change for us plus we'll get some back. This hurts the PS3. How can we help?

Immersion: .oO( :) , MS "admitting guilt" helped us get Sony. Maybe we can run with the money while they're not looking. )

Edit: Just finished reading Brett's article (link) It's exactly what I was thinking.
Amon 21st June 2007, 05:14 Quote
Quote:
Originally Posted by TheVoice
They have every right to defend the contract. Any company could have done the same thing.
Conceiving that backdoor kind of contract condition, to me, vividly depicts Megasoft having their F-box irrecoverably deep up their... ass-uming ego.

They're just asking for a bum rap when they, being the guilty one in the rumble technology lawsuit, append these 'conditional scenarios' onto their agreement: it doesn't make sense for the guilty party to be seeking compensation from the prosecutor; totally illogical, if not countersue-worthy.

I'm also scratching my head at Immersion's choice to agree to those conditions.
mikeuk2004 21st June 2007, 11:40 Quote
What a strange deal. I mean you sue MS and Sony and let Ms off £15M if they win against Sony.

So Sony is not only paying its own bill to Immersion but is also paying for MS's bill too.

Alot of money just for a little rumble.
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