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Sony to Pay Immersion $150.3 Million to Settle Suit

Sony Corp., the world's second- largest consumer-electronics maker, agreed to pay Immersion Corp. $150.3 million to end a patent dispute over technology used in Sony's PlayStation video-game console.

Immersion, a San Jose, California-based software developer, will get a $97.2 million court judgment, plus royalties totaling at least $53.1 million, Chief Financial Officer Stephen Ambler said today in an interview. Immersion shares jumped as much as 38 percent in after-hours trading.

''We look forward to exploring with Immersion exciting new ways to bring the largest and best range of gameplay experiences to our customers,'' Kazuo Hirai, president of Sony Computer Entertainment Inc., said in a joint statement.

A jury in Oakland, California, found in September 2004 that Tokyo-based Sony infringed two Immersion patents for so-called haptic technology, used in PlayStation and PlayStation 2 consoles to make game controllers vibrate with the onscreen action. The jury awarded $82 million, which grew to $90.7 million with the judge's addition of interest and costs.

With interest, that figure increased to $97.2 million, Ambler said. Sony also paid about $30.6 million as a compulsory license for the past two years, money which Immersion treated as deferred revenue. Sony will make 12 more quarterly licensing payments totaling $22.5 million through the end of 2009 and may pay other royalties during the period, Ambler said.

No Profits

''We are pleased to have put this litigation behind us,'' Victor Viegas, Immersion's chief executive officer, said in the joint statement. Immersion, with total sales of $24.3 million in 2005, hasn't reported an annual profit since first selling shares to the public in 1999.

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bloomberg.com
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Apocalypse Shadow3609d ago

BUUUUUUUUUYAAAAAAAAAHHHHH!!!!

again fanboys will complain that motorstorm doesn't have rumble.but then again,another strike down to the foaming at the mouth fanboys.

techie3609d ago

Who says it won't laddy. We now have a thing called software updates and patches...they can add that in a flash.

kingboy3609d ago (Edited 3609d ago )

i hope sony works with slitfish corp. on their new rumbling technique and not immersion for any futur sixaxis modifications

Maddens Raiders :Yea looks like it(sneaky bastards knew about it all this time)

deepbrown:i think the article says that and their relationship kinda continues

techie3609d ago

Doesn't this news state that they are working with Immersion....?

Maddens Raiders3609d ago (Edited 3609d ago )

succinct and to the point. Man this is like a really good day or something. I'm sorry but I've got to pull a Jin Kizama move here and say: This is Living® lol what a day.....wow

EDIT>> Kingboy I guess that's why they told Splitfish to hit the bricks, eh? Sneaky bastards knew they were getting it back all along.

THAMMER13609d ago

To Sony. Now what games will support it in the future.

techie3609d ago

All hopefully...you can patch for rumble like can't you?

TheMART3609d ago

Guys not that fast...

They could have paid only for the PAST use of rumble for PS1 and PS2. They might not have licensed it with this settlement for the PS3.

Plus, why are Sony fans that normally say rumble doesn't matter now so happy? I can't get that guys, I really don't.

techie3609d ago

oh cause they are hypocrits. Anyway it says on the news that they look forward to a new working relationship and will be bringing products in the future, so put that in your pipe and smoke it.

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