Immersion settles Microsoft litigation for $21 million

Immersion will pay a $20.75 million one-time payment to Microsoft to settle breach-of-contract charges the software giant brought against the San Jose developer and licensor of touch feedback technology in June 2007.

Microsoft alleged that Immersion breached a sub-license agreement executed in connection with the settlement in 2003 of Immersion’s claims of patent infringement against Microsoft in Immersion v. Microsoft, Sony. Microsoft maintained it was entitled to a share of the judgment monies and other sums received from Sony, which Microsoft originally said was worth at least $27.5 million, which it increased to $35.6 million at a court-ordered mediation meeting on Dec. 11.

Immersion subsequently filed a counterclaim that Microsoft breached a confidentiality agreement between the companies dated May 2007.

In addition to the one-time fee, the settlement calls for Immersion to be admitted to Microsoft’s certified partner program. Other terms of the settlement are “confidential,” according to a press release Immersion put out Tuesday.


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