Microsoft, Sony and Immersion-A Threesome Worth $20.75M

By Jenny Huntington
11:42, August 29th 2008
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Microsoft, Sony and Immersion-A Threesome Worth $20.75M

In 2002, Immersion filed a lawsuit against both Microsoft and Sony, stating that the “rumble” technology - which provides a tactile feeling of shaking in online gaming - the company had developed was being illegally used in Xbox, respectively PlayStation controllers.

A year later, Microsoft chose to settle and paid Immersion $27M. Nevertheless, the settlement they had reached granted Microsoft an irrevocable license to Immersion's portfolio of patents, also providing it with sublicense rights.

Another year later, in September, Immersion and Sony came to a settlement, too, when the court ordered the latter company to pay Immersion $90.7 million.

March 2005 came with rather disturbing news for Sony, as the same court issued an injunction that prohibited the company “from manufacturing, using and selling or importing into the U.S. the infringing Sony Play Station system, including its consoles.”

As a result, Sony filed an appeal-in February 2006-and the two companies settled yet one more time, Sony paying $22.5 million for the license rights that the agreement entailed.

March 2007: case officially closed. Too bad Microsoft begged to differ, the company claiming that "despite the demand to do so, Immersion has failed to make any payment under the SLA (service license agreement) to Microsoft following Immersion's settlement with Sony" and that they were actually obligated to "pay Microsoft a minimum of $15 million for any amounts received from Sony up to $100.0 million, plus 25 percent of any amounts over $100 million up to $150 million, and 17.5 percent of any amounts over $150 million.," CRN NY informs.

Therefore, in 2008, Immersion agreed to pay Microsoft $20.75 million to settle this lawsuit. Hopefully, once and for all.



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