Vedio-game company Immersion said on Thursday that it will pay Microsoft 20.75 million dollars under a lawsuit settlement between the two parties.
As part of the deal, Immersion would become a Microsoft partner and aim to make its technologies work with the next version of Microsoft's Windows operating system. Immersion specializes in "touch feedback" -- including a method of making video-game controllers "rumble" in conjunction with action on screen.
The partnership arrangement between the companies was "a very important component, I think, both for Microsoft and for us," said Clent Richardson, Immersion's chief executive.
The deal concluded a saga that started in 2002, when Immersion sued Microsoft and Sony for patent infringement. Microsoft and Immersion settled that case in 2003, with Microsoft making a 26-million-dollar payment to Immersion.
Although it wasn't made public at the time, that previous settlement included an unusual provision that required Immersion to give a sizable chunk of money back to Microsoft once Immersion settled with Sony, depending on the size of any Sony-Immersion deal. In other words, Microsoft was providing Immersion with funds as the smaller company waged a legal battle against Microsoft's rival. The payback clause meant Microsoft would essentially receive a refund if Immersion prevailed.
In March 2007, Sony and Immersion announced that they had "agreed to conclude their patent litigation" and enter into "a new business agreement."
Microsoft's June 2007 lawsuit contended that Immersion was trying to pretend the Sony deal wasn't really a settlement, to avoid making the payment required under their 2003 settlement. This week's settlement ended Microsoft's follow-up suit.
Microsoft already uses rumble technology for its Xbox 360 game controllers. With its new status as a Microsoft partner, Immersion's Richardson said the company will focus on making its technology work with the next version of the Windows operating system, due in2010.
Source: Xinhua
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