The Sony news continues this week as their ongoing law suits finally play out in court and agreements are made. Back in 2002 Immersion sued Sony for using their patented technology in their PlayStation and PlayStation 2 controllers. Asking for $299 million dollars in reparations, Immersion Corp.'s court advancements in 2004 threatened to halt American sales of PS1 and PS2 consoles, controllers, and any games that use their "vibro-tactile" technology. Years later, the two have finally compromised and settled the case. Yesterday they came to an agreement:
"Sony will pay San Jose-based Immersion $97.2 million in damages and interest . . . Sony will also pay $22.5 million in licensing payments through 2009 plus an unspecified amount of fees and royalties."
When you factor in the amount Sony already paid, the total amount reaches a little over $150 million dollars. Quite the setback when you've just put so much money into your PS3 launch, and still have yet to go public in Europe, but the benefits should outweigh the costs in the long run:
"In return, Sony will get unspecified rights to some of Immersion's patents and will explore ways to include the technology in future PlayStation products. No further details of the business arrangement or terms of the deal were disclosed."
Sony doesn't think the money transfer will affect their latest earnings forecasts, but stock market traders in Tokyo noticed the news and in after hours trading Sony's stock fell 6.2% to 5,830 yen ($49.36), while Immersion's shares jumped 32%. It's good to see this court case finally come to an end so that Sony can move on with their PS3. Kaz Hirai and the rest of the Sony crew were obviously happy to put this in the past, but no new Sixaxis controller news has been announced yet.