Microsoft Sued By In-Fusio Over Mobile Halo

A new lawsuit from French mobile developer In-Fusio is seeking damages from Microsoft following what it alleges is a wrongful contract termination in an agreement to develop a mobile version of hit series Halo. The suit, filed in a Seattle court in the week preceding Christmas, relates to a $2 million contract between Microsoft and In-Fusio which would have seen the developer creating new mobile titles set in the Halo universe over the following years. The agreement also gave In-Fusio rights to create the Halo: Mobile Portal, a service which allows cellphones to check Xbox Live stats, get tips, wallpapers, ringtones, as reported in October. According to the injunction filed by In-Fusio, the developer agreed to pay Microsoft four payments of $500,000 from 2006 to 2008 for the rights to develop its Halo titles, with Microsoft providing guidance, feedback, and final approval on the studio's design and code submissions. In-Fusio alleges, however, that following a first payment installment and initial design submissions, Microsoft repeatedly denied the studio both design approval and adequate feedback to continue development on its mobile titles as stipulated in the contract, while at the same time demanding a second payment. After an agreement was reached for In-Fusio to delay its second payment until Microsoft could approve a submitted game concept and still, according to the suit, neglecting to do so, Microsoft notified the studio that without the second payment, In-Fusio was in breach of contract and the agreement would be terminated. "Under the agreement," the statement reads, "In-Fusio's Halo programming designs are subject to Microsoft's approval, which cannot be unreasonably withheld. Nevertheless, Microsoft has thwarted In-Fusio's efforts to develop Halo under the agreement. Indeed, in the last 11 months, Microsoft has approved no fully-developed In-Fusio Halo game designs; ignoring and then refusing to accept In-Fusio's game design concepts with little or no explanation and leaving In-Fusio little basis to revise its concepts to obtain Microsoft's approval." Microsoft has not yet responded to the allegations or filed a response to the suit with the court. Both In-Fusio's full complaint and a related memorandum are available via the website of Seattle daily newspaper the Post Intelligencer.