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March 4, 2007
Game Over
In a stunning concession, Sony agreed to pay Immersion $150 million to settle
a five-year litigation battle. Sony puts behind it a string of courtroom defeats.
Immersion filed against Sony in the Northern District of California in February 2002. Judge Claudia Wilken had consistently ruled against Sony on motions. In September 2004, Sony was ordered by jury verdict to fork over $82 million for infringing two videogame controller patents; in-sync vibration (haptic) technology used in Sony's Playstation & Playstation 2 videogame boxes.
In attempting to overturn the infringement verdict by vying for a new trial, Sony alleged inequitable conduct for failing to reveal prior art during prosecution. Sony had hired, and paid, as Immersion pointed out, one of Immersion's former consultants. The judge declared the hired mouthpiece an "unreliable witness," and denied a new trial.
Sony had appealed. A permanent injunction had been stayed pending the appeal's outcome, but a 1.37% compulsory license had been applied for the duration of the stay. Sony also appealed the compulsory license.
Sony's $150 million provides a full license for ongoing use, as well as covering licensing for past use.
Immersion has successfully enforced these patents before: Microsoft paid $26 million in settlement, including $6 million for a 10% stake in the company. In 2001, Immersion forced the largest U.S. distributor of gaming accessories, Interact Accessories, to settle.
Posted by Patent Hawk at March 4, 2007 11:34 PM | Litigation