The legal battle between Immersion and Microsoft is over -- again. Back in 2002, Immersion sued Microsoft for patent infringement relating to Immersion patents for force feedback controllers. The rumble effects in Microsoft controllers for the Xbox were at the heart of the suit.
Microsoft later settled with Immersion, agreeing to pay $26 million to settle the litigation between the two firms. Immersion also filed a similar patent suit against Sony for using rumble in its game controllers. Sony refused to license the technology, leading to the lack of rumble effects in PS3 controllers when the PS3 first launched.
Part of the settlement stipulations between Microsoft and Immersion stated that if Sony should ever come back and license Immersion's technology to add vibration effects into PS3 controllers, Immersion would pay Microsoft a portion of any settlement received from Sony.
The particulars of the clause said that Immersion would give Microsoft a minimum of $15 million from any Sony settlement plus a percentage of any amount over $100 million. When Immersion finally settled with Sony -- to the tune of $22.5 million over 3 years and more than $100 million in costs -- Microsoft told Immersion to pay up.
Immersion refused to pay Microsoft, leading to another round of legal action with Microsoft suing Immersion for breach of contract. Forbes reports that Immersion has finally agreed to pay Microsoft the portion of money from the Sony settlement it was due.
Associate General Counsel for Microsoft, Steve Aeschbacher, said in a statement, "We are pleased to have reached a resolution to our legal dispute with Immersion that includes a $20.75 million payment to Microsoft. 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."