Microsoft and Immersion lawsuit finally come to a settlement

The lawsuit between the Microsoft Corp and Immersion Corp. comes to an end as both of them have decided to come to a settlement. Under the proposed settlement, the Immersion Corp. will pay $20.75 million to Microsoft. Thus it will bring an end to the 2007 lawsuit that revealed maneuvering against video-game console Sony.

The settlement professes an end to the lawsuit that started way back in 2002. Immersion sued Microsoft and Sony for patent infringement. Microsoft and Immersion settled that case in 2003, with Microsoft making a $26 million payment to Immersion. 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 2007 both the companies, Sony and Immersion came to a business agreement. Later, in the same year, Microsoft’s June 2007 lawsuit alleged that Immersion was trying to pretend the Sony deal wasn’t really a settlement, to avoid making the return payment required under their 2003 settlement. This week’s settlement ended Microsoft’s follow-up suit.

As response to the settlement, Steve Aeschbacher, Microsoft associate general counsel said,”We are gratified that we have successfully resolved our claims under the 2003 settlement we negotiated with Immersion, which provided benefits to both companies and specific rights to Microsoft.”

Immersion, as a Microspft partner, will likely to focus on making its technology work with Windows 7, the code name for the next version of the Microsoft PC operating system, due out in 2010.



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