Immersion forced to pay Microsoft $20 million

In what is hopefully a finale to a long legal farce, Immersion has been ordered to pay Microsoft $20.75 million as a result of Sony including rumble technology in its PS3 controllers.

Immersion owns the rumble patent, but had agreed to pay Microsoft a one-off sum of $15 million should Sony include rumble in DualShock 3 after Microsoft paid to have vibrating 360 pads. When Sony announced is was to release a second PS3 controller over Sixaxis, Immersion refused to cough up.

So Microsoft took it to court and won. The end. Thanks Kotaku. Press release after the link.

SAN JOSE, Calif., Aug 26, 2008 (BUSINESS WIRE) -- Immersion Corporation (NASDAQ:IMMR), the leading developer and licensor of touch feedback technology, today announced that Immersion and Microsoft (NASDAQ: MSFT), have settled their litigation, which was pending in the United States District Court for the Western District of Washington since June 2007.

Immersion and Microsoft have agreed to resolve Microsoft's claim under a 2003 Sublicense Agreement between Microsoft and Immersion, as well as Immersion's counterclaim that Microsoft breached a confidentiality agreement between the companies dated May 2007. Immersion agreed to make a one time payment to Microsoft in the amount of $20.75 million. In addition, Immersion will be admitted to Microsoft's Certified Partner Program. Other terms of the settlement are confidential.

"We are pleased to resolve our outstanding dispute with Microsoft and to put this litigation behind us," said Immersion president and CEO Clent Richardson. "We now have our full attention and focus devoted to working with innovative companies around the world, including Microsoft, to accelerate and rapidly achieve global adoption of our haptic technology in gaming, consumer electronics, mobility, and medical products."