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In-Fusio, the French mobile game developer hired to create a Halo game for mobile phones, has filed a lawsuit against Microsoft for breach of contract.
Microsoft and In-Fusio were in a three-year exclusive contract to bring a Halo game to mobile phones. The two companies are now one year into the contract and In-Fusion is claiming that programming designs approval has been hindering work.
“Under the Agreement, In-Fusio’s Halo programming designs are subject to Microsoft’s approval, which cannot be unreasonably withheld,” the lawsuit reads. “Nevertheless, Microsoft has thwarted In-Fusio’s efforts to develop Halo under the Agreement. Indeed, in the last eleven 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 approved the first project under the agreement, Halo Portal, but has only approved as few as four game designs between February and September 2006 for an actual mobile Halo game.
In-Fusio was in contract to pay Microsoft a minimum of $2 million in royalties. The payments would be in $500,000 increments between January 1, 2006 and June 1, 2008. After continuously rejecting In-Fusio’s game designs, Microsoft allegedly agreed to delay the payment schedule. Yet, In-Fusio claims that in November of 2006, Microsoft sent notice that it would terminate the contract if In-Fusio didn’t make its delayed payment of $500,000 within thirty days.
In-Fusio wants to retain exclusive rights to Halo on mobile phones for an extended period of time and wants Microsoft’s right to review and improve In-Fusio’s Halo products relinquished. The company is also seeking no less than $10,075,000 in damages for breach of contract and covenant of good faith, as well as legal fees.
Microsoft has not commented on the lawsuit.