Immersion Corp. has agreed to pay $20.75 million to settle a legal dispute with Microsoft that started years ago between the two companies, over patent infringement issues.

The legal dispute started back in 2002, when Immersion filed a lawsuit against Microsoft and Sony over Xbox and PlayStation game controllers. Microsoft agreed to pay $26 million at the time, in order to settle the lawsuit.

The lawsuit against Sony ended last year, when the electronics maker was forced to pay a total of $121 million to Immersion.

However, things did not end here. In 2003, Microsoft closed a deal with Immersion concerning business and IP licensing arrangements. According to the terms of the sub-license agreement, Microsoft was entitled to at least $15 million from any Sony payment over $100 million, plus 25 percent of any amount over $100 million up to $150 million.

This means that under the sub-license agreement, Microsoft is entitled to a percent of that $121 million settlement between Immersion and Sony.

“We entered into a binding licensing agreement with Immersion and are seeking to have that agreement honored,” Microsoft said at the time, adding that their request simply demands that all companies and industry partners play by the same rules.

In 2007, Microsoft filed a separate lawsuit against Immersion, asking for the portion they were entitled to under the previous agreement. Immersion however did not give up so easily, and countersued, accusing Microsoft of breaking a confidentiality agreement. However, more than one year later, the two parts reached an agreement that will bring Microsoft $20.75 million.