Microsoft sues Immersion Corp.
Microsoft Corp. (Nasdaq: MSFT) filed a lawsuit against touch screen technology maker and licensor Immersion Corp. (Nasdaq: IMMR) Tuesday morning.
Microsoft purports that Immersion breached its sublicense agreement with Microsoft, and is seeking damages, specific performance, declaratory judgment and attorney fees and costs.
Under Immersion’s sublicense agreement with Microsoft, in the event of a settlement with Sony Computer Entertainment, Immersion is obligated to pay Microsoft a minimum of $15 million for any amounts received from Sony up to $100 million, plus 25% of any amounts over $100 million up to $150 million, and 17.5% of any amounts over $150 million.
Immersion believes it is not obligated to pay Microsoft relating to the conclusion of its litigation with Sony Computer Entertainment under the sublicense agreement.
Shares of Immersion traded down 5.4% or $0.72 to $12.68 out of the gate Tuesday morning.
