Immersion will pay $20.8 million to Microsoft to settle the lawsuit triggered by the tactile feedback technology for mice and joysticks, the rumble technology.

In 2002 Immersion sued both Microsoft and Sony, alleging infringement of Immersion's haptic technology in the controllers of their popular video gaming consoles, such as the Microsoft Xbox and Sony PlayStation.

In 2003 Microsoft was forced to pay $26 million to be able to license and integrate the rumble technology into the Xbox 360 controller, hakes when triggered by a game event, like a car driving over a speed bump.

However, due to some financial disagreements between Sony and Immersion, the rumble technology failed to be implemented in PlayStation 3’s controller, but the whole spat ended last year with a $22.5 million payment from Sony, in addition to more than $100 million in costs, royalties and patent license fees, bringing the total to about $121 million.
However, a clause in the MS-Immersion deal stipulated that if Immersion settled their legal matters with Sony, then Microsoft stood to receive money from Immersion.

The agreement, available at this address, states that: "In the event that Microsoft were to prevail, the Company [Immersion] would be obligated to pay Microsoft a minimum of $15.0 million for any amounts received from Sony up to $100.0 million, plus 25% of any amounts over $100.0 million and up to $150.0 million and 17.5% of any amounts over $150.0 million."

But Immersion declined to pay and Microsoft sued the company in U.S. District Court in Washington State in June 2007, seeking a portion of the $113 million. Immersion denied that it was obliged to pay Microsoft and filed a counterclaim, saying Microsoft breached a confidentiality agreement between the companies dated May 2007.

But now Microsoft and Immersion have ended their legal battle, with a one-time payment by Immersion to Microsoft for $20.75 million, and Immersion's admission to Microsoft's Certified Partner Program.

"We now have our full attention and focus devoted to working with innovative companies around the world, including Microsoft, to accelerate and rapidly achieve global adoption of our haptic technology in gaming, consumer electronics, mobility, and medical products," said Clent Richardson, Immersion CEO.