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Barry
Mr. Do It All

Sep 24, 2004, 7:16 PM
Post #1 of 1
(730 views)
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Sony Looses Patent Battle - $82 Million Ordered Paid
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A federal jury Wednesday ordered Sony to pay $82 million to Immersion for violating the San Jose company's patents on video game technology. The two "force-feedback" patents in dispute cover how game controllers vibrate in tandem with explosions and movements in a video game. The verdict from the Oakland federal court is a big boost to Immersion, a struggling technology-licensing company. Sony issued a statement Wednesday saying it would appeal the verdict. "While we appreciate the hard work of the court and the jury, we are, of course, disappointed and disagree with the outcome," the company said. "Patent cases are highly technical and extremely difficult and too often wrongly decided." Founded in 1993 by Stanford University and MIT researchers, Immersion collected hundreds of patents related to "haptics," a Greek word meaning the science of touch. The company, which has licensed its technology to various industries, went public in 1999. Immersion's goal is to incorporate its technology into all electronic devices so that they generate a particular sensation. The company contended that Sony and other game companies misappropriated its technology when they created "dual shock" game controllers that vibrate in the hands of gamers. Immersion filed patent-infringement suits against Sony and Microsoft in 2002. Microsoft settled the litigation last year, paying Immersion $19.9 million and other non-cash damages in exchange for a license for the vibrating controllers for its Xbox video game console. While Nintendo sells vibrating controllers, Immersion has not yet sued the Japanese company. Viegas declined to say if Immersion would now sue Nintendo, noting his company was focusing its limited legal resources on Sony. If the jury award against Sony is upheld on appeal, it will help Immersion's bottom line. In the second quarter ended July 26, the company reported a loss of $4.8 million, compared with a loss of $4.4 million a year earlier. Immersion has spent more than $16 million on legal costs related to the Sony case. Join the forum and enter to win free monthly prize giveaways!
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