Immersion Pays Microsoft $20.75 Million to Settle Patent Dispute

Authored by Mark Hefflinger on August 27, 2008 - 9:37am.

San Jose, Calif. - Immersion Corp. (NASD: IMMR), a developer of touch feedback technology used in video game controllers, announced on Wednesday that it has settled outstanding litigation with Microsoft (NASD: MSFT), and will pay the company $20.75 million.

San Jose, Calif.-based Immersion sued both Microsoft and Sony (NYSE: SNE) for patent infringement back in 2002, eventually settling with both companies -- with Microsoft paying Immersion $26 million and Sony paying $90 million.

A clause in its settlement with Microsoft called for Immersion to pay Microsoft a cut of any other patent settlements, but the company said its deal with Sony was not covered under the terms.

However, a judge agreed with Microsoft, and ordered Immersion to pay up.