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Microsoft and Immersion Settle

Immersion settles with Microsoft on monies due from Sony settlement. Immersion is the inventor of "haptic" or tactile touchscreens which simulate a sensation of push-down when you touch the screen. In theory it sounds pretty nice but it has turned out to be cost prohibitive given its benefits.

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Immersion, Microsoft Settle Suit
August 26, 2008 5:35 p.m.

Immersion Corp. will pay $20.8 million to Microsoft Corp. to settle a lawsuit over a payment Immersion received from a unit of Sony Corp. Microsoft sued Immersion -- which makes technology to simulate the vibration of an explosion or other event through a videogame joystick or controller -- in U.S. District Court in Washington state in June 2007, seeking a portion of the $121 million that Sony Computer Entertainment agreed to pay Immersion to settle its appeal of a patent-infringement verdict. Microsoft's suit alleged that under its sub-license agreement, Immersion was obligated to pay Microsoft a minimum of $15 million for any payments from Sony up to $100 million, plus 25% of any amounts over $100 million up to $150 million. Immersion denied that it was obliged to pay Microsoft and filed a counterclaim, saying Microsoft breached a confidentiality agreement between the companies dated May 2007.