Jump to content


Photo

Immersion to pay Microsoft 21 million USD using Sony Money


  • Please log in to reply
18 replies to this topic

#1 Xbox-Scene

Xbox-Scene

    Memba Numero Uno

  • Admin
  • 5,201 posts
  • Location:Yurop
  • Xbox Version:unk
  • 360 version:unknown

Posted 27 August 2008 - 05:56 PM

Immersion to pay Microsoft 21 million USD using Sony Money
Posted by XanTium | August 27 12:56 EST | News Category: Xbox360
 
From manufacturing.net:


Immersion Corp. has agreed to pay Microsoft Corp. $20.75 million to settle a legal tangle that started with a suit against Microsoft over the "rumble" feature of its Xbox game console controllers.

San Jose-based Immersion sued Microsoft in 2002, alleging that the Xbox controller infringed on a patent for force feedback, Immersion's specialty. The Xbox controller shakes when triggered by a game event, like a car driving over a speed bump. Microsoft agreed to pay Immersion $26 million to settle the lawsuit.

Immersion also sued Sony Corp., which makes the PlayStation game console. That suit was resolved in March last year, when the electronics maker agreed to pay Immersion $22.5 million over three years, plus more than $100 million in costs, royalties and patent license fees.

Immersion's agreement with Microsoft contained a clause requiring it to hand over a slice of any settlement with Sony -- a minimum of $15 million, plus percentages of any amount over $100 million. Immersion said the agreement with Sony did not trigger that clause, but Microsoft disagreed, and filed suit last year in the U.S. District Court for the Western District of Washington.

Both the Microsoft suit and Immersion's counterclaim have now been settled, Immersion said.


Full Story: manufacturing.net






#2 steveo1978

steveo1978

    Super Moderator

  • Head Moderators
  • PipPipPipPipPip
  • 1,966 posts
  • Gender:Male
  • Location:north carolina
  • Xbox Version:v1.2
  • 360 version:v4.0 (jasper)

Posted 27 August 2008 - 06:50 PM

now thats some funny stuff

#3 0794

0794

    X-S Freak

  • Members
  • PipPipPipPipPip
  • 1,095 posts
  • Interests:medicine, engineering, Jeeps, technology, automobiles, and just about everything...
  • Xbox Version:v1.4
  • 360 version:v1 (xenon)

Posted 27 August 2008 - 06:52 PM

what an interesting circle of cash flow...

basically MS re-captures almost all of the money lost in their suit with Immersion due to this "clause" in their contract with them regarding suits with Sony...amazing that some lawyers would have thought to included that clause and interesting to see that Immersion's counter-suit failed...

i will never fully understand the "law" or crazy legal proceedings...

#4 Kazaki

Kazaki

    X-S Senior Member

  • Members
  • PipPip
  • 220 posts
  • Xbox Version:v1.0
  • 360 version:unknown

Posted 27 August 2008 - 06:56 PM

How does that even work?

"Ok, I'll settle with you only if you agree to give me a percentage of money from any other settlements you may have with [COMPANY NAME A HERE]." "Even though you have absolutely no relationship with this company nor rights over the patent we are suing you for and subsequently would sue other companies for, that sounds perfectly reasonable. You sir have a settlement."

#5 halcyonx12

halcyonx12

    X-S Member

  • Members
  • Pip
  • 117 posts

Posted 27 August 2008 - 07:06 PM

What, is that like how SCO sued Novell and IBM with Microsoft's money?

#6 twistedsymphony

twistedsymphony

    arrogant beyond belief

  • Head Moderators
  • PipPipPipPipPipPipPipPipPipPipPipPipPipPipPip
  • 10,466 posts
  • Gender:Male
  • Location:Almost Canada http://solid-orange.com
  • Interests:Consoles, Computers, Cars, Arcades, Home Theater, and the modding of anything that moves.
  • Xbox Version:v1.0
  • 360 version:v2 (zephyr)

Posted 27 August 2008 - 07:17 PM

QUOTE(Kazaki @ Aug 27 2008, 02:32 PM) View Post

How does that even work?

"Ok, I'll settle with you only if you agree to give me a percentage of money from any other settlements you may have with [COMPANY NAME A HERE]." "Even though you have absolutely no relationship with this company nor rights over the patent we are suing you for and subsequently would sue other companies for, that sounds perfectly reasonable. You sir have a settlement."


It makes sense because after Microsoft got sued they BOUGHT a large percentage of stock in Immersion as part of the settlement, there by owning part of the company.

so even if they didn't give money directly to MS, MS would still be making money from them through shareholder profits.

MS knows their way around the legal system... that's some smart f-ing business right there. What other company gets sued for hundreds of millions and turns it around to make a tidy profit laugh.gif

#7 majik655

majik655

    X-S Freak

  • Members
  • PipPipPipPipPip
  • 1,525 posts
  • Location:Portland, Oregon
  • Xbox Version:v1.0
  • 360 version:v1 (xenon)

Posted 27 August 2008 - 07:40 PM

QUOTE(twistedsymphony @ Aug 27 2008, 11:53 AM) View Post

It makes sense because after Microsoft got sued they BOUGHT a large percentage of stock in Immersion as part of the settlement, there by owning part of the company.

so even if they didn't give money directly to MS, MS would still be making money from them through shareholder profits.

MS knows their way around the legal system... that's some smart f-ing business right there. What other company gets sued for hundreds of millions and turns it around to make a tidy profit laugh.gif



So let me get this straight (or try)

MS after being sued by immerson... went out and said ok we will settle IF you let us buy a majority of stock, and by doing that... if you win any money from anyone else we want a percentage of that too since we basically own a large chunk of your company. ???
That IS some great thinking!

What I do not understand is why would immerson agree to this to begin with? because of cost of TRYING to sue MS? I mean obviously this means they did not know if they would win or not?



#8 sabbath_dude

sabbath_dude

    X-S Hacker

  • Head Moderators
  • PipPipPipPipPipPip
  • 2,288 posts
  • Gender:Male
  • Location:Scotland
  • Interests:Xbox, Rock music, Beer
  • Xbox Version:v1.6c
  • 360 version:v3.0 (falcon)

Posted 27 August 2008 - 07:49 PM

That's pretty funny. You've got to love how MS manages to spins things in their favour even when they're the ones getting sued. I suppose when you have as much money as they do and you can afford the best lawyers you're pretty much untouchable.

#9 DMAddict

DMAddict

    X-S Expert

  • Members
  • PipPipPip
  • 678 posts
  • Location:Tetraspace
  • Xbox Version:v1.0
  • 360 version:v4.0 (jasper)

Posted 27 August 2008 - 08:02 PM

In other news, Immersion's entire legal team is being fired for getting pwned by MS. laugh.gif

#10 sentinel0

sentinel0

    X-S Member

  • Members
  • Pip
  • 77 posts
  • Xbox Version:v1.6
  • 360 version:v1 (xenon)

Posted 27 August 2008 - 08:07 PM

My guess is that the initial 26mill bought microsoft some rights to the patent it's self so if the patent made money by suing other companies then microsoft was entitled to there share of the profits.

#11 47_M450N_47

47_M450N_47

    X-S Freak

  • Members
  • PipPipPipPipPip
  • 1,230 posts
  • Location:North Alabama
  • Interests:Xbox modding, anything with computers and networking. Gaming. Shooting stuff, blowing up stuff.
  • Xbox Version:v1.1
  • 360 version:v1 (xenon)

Posted 27 August 2008 - 08:18 PM

That's MS for you. Always finding somehow to do crazy things to get their money back.

#12 Bad_Ad

Bad_Ad

    X-S Senior Member

  • Members
  • PipPip
  • 164 posts
  • Xbox Version:v1.0
  • 360 version:v1 (xenon)

Posted 27 August 2008 - 08:38 PM

Sounds like MS made the suggestion so Immersion had the money to go after Sony.

Immersion win (look at the amounts, min of 15 mil + a percentage of anything over 100 mil, so clearly it was over 100 from sony) and MS win as Sony get owned and get some of their money back (note that they also paid over 100 mil in costs and royalitys not just the original 26 mil).

Smart moves from both Immersion and MS, with Sony being the reciever.

Edited by Bad_Ad, 27 August 2008 - 08:40 PM.


#13 Worseley

Worseley

    X-S Young Member

  • Members
  • Pip
  • 53 posts
  • Xbox Version:v1.0
  • 360 version:v3.0 (falcon)

Posted 27 August 2008 - 10:40 PM

Well you've got to remember that back then Immersion had no chance in Hell that they were going to get any settlement from MS or Sony anytime soon. So when MS did pay Immersion they also stated that they were wrong, that they infringed on their patents and thats what the settlement was for.

By saying they did this, that really hurt Sony's defense since they were facing the same charges. All of a sudden Immersion had another case to use as a precedent in their case with Sony.

Basically, MS by saying 'My Bad' caused Sony to have to pay too. But by settling with them sooner and Giving Immersion the cashflow they needed for the long haul MS knew it was a Win/Win scenario, even if they didn't get all of their money back.

#14 trentdadi

trentdadi

    X-S Freak

  • Members
  • PipPipPipPipPip
  • 1,351 posts

Posted 27 August 2008 - 11:46 PM

QUOTE(majik655 @ Aug 27 2008, 08:16 PM) View Post

So let me get this straight (or try)

MS after being sued by immerson... went out and said ok we will settle IF you let us buy a majority of stock, and by doing that... if you win any money from anyone else we want a percentage of that too since we basically own a large chunk of your company. ???
That IS some great thinking!

What I do not understand is why would immerson agree to this to begin with? because of cost of TRYING to sue MS? I mean obviously this means they did not know if they would win or not?


No, the company doesn't have to ask if they can buy a large portion of stocks, they just do it and it's basically a takeover. So in other words, from what I understand Microsoft got sued by them so they just end up buying them out, and then going after Sony. Someone at Microsoft has a lot of similarities to Lionel Luthor.

#15 cory1492

cory1492

    X-S X-perience

  • Members
  • PipPip
  • 317 posts
  • Location:Canada
  • Xbox Version:v1.2
  • 360 version:v3.0 (falcon)

Posted 28 August 2008 - 01:49 AM

And of course, the real people who actually made money from this whole misguided venture... the lawyers (jester.gif) doing all the suing.




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users