Immersion Forced To Pay Microsoft $20 MillionYou'll no doubt be familiar with the name Immersion. They're the rumble guys. Microsoft had to pay them to get rumble in the 360 pad, while Sony refused, resulting in the rumble-free Sixaxis. When Sony eventually did cough up the money, though, that led to more dramas, as part of Microsoft's deal with Immersion was a clause that said they would have to pay MS $15 million should Sony swallow their pride and pay for the use of rumble. Which they did. And it was a fee Immersion, in a delicious irony, refused to pay. That led to a legal tussle between Immersion and Microsoft, which has today been settled, with the rumble dudes agreeing to cough up $20.75 million. Phew. Hopefully that's the last time we need to write the words "Immersion" and "legal" in the same story.
SAN JOSE, Calif., Aug 26, 2008 (BUSINESS WIRE) — Immersion Corporation (NASDAQ:IMMR), the leading developer and licensor of touch feedback technology, today announced that Immersion and Microsoft (NASDAQ: MSFT), have settled their litigation, which was pending in the United States District Court for the Western District of Washington since June 2007. Immersion and Microsoft have agreed to resolve Microsoft's claim under a 2003 Sublicense Agreement between Microsoft and Immersion, as well as Immersion's counterclaim that Microsoft breached a confidentiality agreement between the companies dated May 2007. Immersion agreed to make a one time payment to Microsoft in the amount of $20.75 million. In addition, Immersion will be admitted to Microsoft's Certified Partner Program. Other terms of the settlement are confidential. "We are pleased to resolve our outstanding dispute with Microsoft and to put this litigation behind us," said Immersion president and CEO Clent Richardson. "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."