In 2006, a small Texan company by the name of Anascape Ltd. took Nintendo and Microsoft to court, claiming the pair had infringed on patents Anascape held relating to game controllers (presumably this one, filed in 2000, for a "3D controller with vibration"). While Microsoft decided to settle things out of court, Nintendo stuck to their guns, a move which has now cost them $21 million after a Federal jury ruled in Anascape's favour. The ruling applies to Nintendo's GameCube, Wavebird and Classic controllers (but not the Wii Remote or Nunchuk). Nintendo have said only that they plan to appeal, and that they expect the court to "significantly" reduce the amount of money they have to cough up.
[Associated Press]