Microsoft and Immersion’s legal battle started in the year 2002 came to an end with Microsoft winning the patent battle. Microsoft had sued Immersion for infringement of patent related to the force feedback controllers. Suit centered on the ruble effects of the Xbox controllers of Microsoft.
According to the settlement between the companies, Immersion is to pay Microsoft a sum of $26 million. A subsequent legal suit was filed by Immersion against Sony for usage of the rumble effect in its game controllers. At the first launch of the PS3, Sony had refused licensing of this technology leading to a lack of rumble effects in the controller.
Microsoft and Immersion also agreed as a part of the settlement conditions that in case of Sony approaching Immersion for licensing the technology of vibration effects in PS3 controllers, a part of the settlement from Sony will be passed on to Microsoft by Immersion.
Details included the clause that a minimum amount of $15 million would be paid from any settlement from Sony by Immersion. Apart from this Microsoft would also receive a percentage of any amount paid over $100 million. In a nutshell, whenever Immersion received settlements of over $22.5 million spread over three years and a whopping $100 million in costs, they have to pay Microsoft.
Legal battle was extended to another round even as Immersion refused to pay up. Microsoft charged Immersion with breach of contract. Microsoft won this round of battle with Immersion finally agreeing to pay up.