Immersion v. Sony
Encyclopedia
In 2002, Sony
Sony
, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....

 and Microsoft
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...

 were sued by Immersion
Immersion Corporation
Immersion Corporation of San Jose, California, is a developer of haptic technology.The company was founded in 1993. Immersion's technology is employed in automotive, entertainment, medical training, mobility, personal computing, and three-dimensional simulation applications. Immersion's patent...

 for patent infringement
Patent infringement
Patent infringement is the commission of a prohibited act with respect to a patented invention without permission from the patent holder. Permission may typically be granted in the form of a license. The definition of patent infringement may vary by jurisdiction, but it typically includes using or...

 for the use of vibration functions in their gaming controllers. Specifically, they were accused of infringing on claims in and (filed 2000 and 2001 as extensions of , itself filed 1998, all "Tactile feedback man-machine interface device"). Both patents were continuation applications of a patent application originally filed in November 1995. Nintendo
Nintendo
is a multinational corporation located in Kyoto, Japan. Founded on September 23, 1889 by Fusajiro Yamauchi, it produced handmade hanafuda cards. By 1963, the company had tried several small niche businesses, such as a cab company and a love hotel....

 was not involved in the case, as the technology used in the Rumble Pak
Rumble Pak
The is a removable device from Nintendo which provides force feedback while playing video games. Games that support the Rumble Pak cause it to vibrate in select situations, such as when firing a weapon or receiving damage, to immerse the player in the game. Versions of the Rumble Pak are available...

 and GameCube controller (and, subsequently, the Wii Remote
Wii Remote
The , also known as the Wiimote, is the primary controller for Nintendo's Wii console. A main feature of the Wii Remote is its motion sensing capability, which allows the user to interact with and manipulate items on screen via gesture recognition and pointing through the use of accelerometer and...

) is based on a different design, for which Nintendo holds the patents and based on a Japan patent application filed on October 9, 1995.

While Microsoft settled out of court, purchasing a 10% share in Immersion, Sony continued to defend the case. Immersion's lead attorney in this case was Morgan Chu
Morgan Chu
Morgan Chu , an intellectual property attorney, is one of the first Asian Americans to lead a major U.S. law firm. Chu's professional accolades recognize him as one of the nation’s most influential lawyers and most successful trial attorneys.A high school dropout, Chu went on to earn advanced...

. The defense centered on a force feedback controller patent which Sony licensed from Logitech during 1998. Sony lost, with the jury awarding Immersion $82 million for the seven years that the DualShock controller had been on the market, which with the judge's addition of pre-judgment interest and costs, totalled $90.7 million. In addition, the judgment required Sony to suspend the sale of all controllers containing Immersion-patented technology, including all PlayStation
PlayStation
The is a 32-bit fifth-generation video game console first released by Sony Computer Entertainment in Japan on December 3, .The PlayStation was the first of the PlayStation series of consoles and handheld game devices. The PlayStation 2 was the console's successor in 2000...

 and PlayStation 2
PlayStation 2
The PlayStation 2 is a sixth-generation video game console manufactured by Sony as part of the PlayStation series. Its development was announced in March 1999 and it was first released on March 4, 2000, in Japan...

 console packages. Sony appealed this decision and has been able to sell its products while the appeal was being heard. On 2006-03-12 Sony lost the appeal at the US District Court level and subsequently appealed to the US Court of Appeals for the Federal Circuit. The order to halt sales of the infringing controllers was again stayed pending the outcome of the appeal.

At E3 2006, Sony announced that vibration functionality would be removed from the PlayStation 3
PlayStation 3
The is the third home video game console produced by Sony Computer Entertainment and the successor to the PlayStation 2 as part of the PlayStation series. The PlayStation 3 competes with Microsoft's Xbox 360 and Nintendo's Wii as part of the seventh generation of video game consoles...

 controller, reasoning that the vibration would interfere with the motion-sensing feature
Sixaxis
The Sixaxis Wireless Controller was the official gamepad for the Sony PlayStation 3 from launch until 2008 when it was succeeded by the DualShock 3....

of the controller. It has been speculated that the removal of vibration is related to the lawsuit, and Immersion President Victor Viegas has been dismissive of Sony's stated rationale.

On March 1, 2007, Sony Computer Entertainment and Immersion Corporation announced that both companies have agreed to end their patent litigation, and have entered a business agreement to "explore the inclusion of Immersion technology in PlayStation format products." As part of the agreement reached between the two companies, Immersion will receive the full amount dictated by the District Court, which with interest is stated to total $97.2 million, in addition to royalties. On top of the $30.6 million in compulsory license fees which Sony had paid Immersion over the previous two years, Sony will make 12 more licensing payments through the end of 2009 totaling $22.5 million, during which other royalties may also be paid.
The agreement also provides Sony with new rights with respect to Immersion's patents. The termination of the litigation will have no material impact on Sony's consolidated earnings forecast announced on January 30, 2007.
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