
Text of Complaint (December 18, 2006)
Memorandum in Support of TRO (December 19, 2006)
French Mobile Game Developer, In-Fusio has filed suit in the District Court of Seattle for breach of contract and breach of good faith and fair dealing. It seeks an injunction prohibiting Microsoft from terminating a development and distribution agreement.
In September of 2005 Microsoft entered into an exclusive Development and Distribution Agreement with In-Fusio to develop versions of the popular Halo video game for certain mobile platforms. Under the deal In-Fusio was to make scheduled minimum royalty payments totaling $2M between Jan 1, 2006 and Jan 1, 2008.
After making its first $500,000 payment, and submitting several design concepts that were not acceptable to Microsoft, the parties were at an impasse. According to In-Fusio’s Memo, Microsoft both: (i) couldn’t decide, internally, what it wanted the mobile version of Halo to be; and (ii) wanted In-Fusio to develop more of a “dumbed down” version of the Halo game for mobile platforms than what In-Fusio thought it had bargained for.
Nonetheless, according to In-Fusio’s claim, Microsoft insisted on receiving the next scheduled royalty payment of $500,000 in October of 2006 after Microsoft allegedly agreed to “postpone” such payment obligations while the parties resolved their design differences.
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