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The French company says it submitted several game designs to Microsoft last year. Microsoft didn't respond to the proposals in a timely way, and then turned them down without any helpful feedback that would have allowed In-Fusio to redesign them, the lawsuit said.At one point Microsoft suspended the royalty payments, and then in September last year it demanded a payment of $500,000, according to the suit. In-Fusio refused to pay on the grounds that Microsoft hadn't abided by the contract and was denying In-Fusio any chance to benefit from it.
In November, Microsoft sent a letter accusing the company of breach of contract and threatening to terminate the agreement if the French company didn't pay the latest royalty installment, according to the lawsuit. In-Fusio then took the matter to court, filing a breach of contract lawsuit on Dec. 19 in the U.S. District Court for the Western District of Washington, in Seattle. In-Fusio is seeking a jury trial, a judgment that it has exclusive rights to develop the mobile version of Halo and unspecified damages.