1up.com writes "My how the tables have turned. Instead of receiving money from a lawsuit, Immersion now has to pay some out. Ars Technica reports the company has agreed to pay Microsoft a cool $21 million as part of the settlement the parties reached over Immersion's original force feedback suit.
Back in 2002 Immersion sued both Sony and Microsoft for infringing upon US patents 6,424,333 and 6,275,213. Microsoft agreed to settle out of court with one of the stipulations being they would receive a payment should Immersion prevail in its suit against Sony. Immersion, of course, finally won the suit in March 2007, which supposedly lost Sony $90 million...and as a result triggered a $15 million payment to Microsoft.
Unfortunately for Immersion, Microsoft felt that amount wasn't adequate and sued Immersion for breach of contract shortly thereafter. Regarding the suit, Microsoft associate general counsel Steve Aeschbacher said "We entered into a binding licensing agreement with Immersion and are asking to have that agreement honored."