Immersion is known for guarding its haptic feedback patents with enthusiasm -- just ask Microsoft, among others. Motorola learned first-hand when Immersion sued over the use of basic haptic technology in May, but all that's water under the bridge now that Motorola's new parent Google is settling the matter out of court. While the exact sums aren't public, Google will pay Immersion to address any relevant past shipments, license the patents for future Motorola shipments and take care of "certain issues" with Google-badged hardware using the disputed vibration techniques. Immersion's end of the bargain is simply to end its legal action, including an ITC complaint, although the company makes clear that non-Motorola Android phones aren't covered by the deal. We're sure Google isn't happy to shoulder additional costs on top of its $12.5 billion Motorola acquisition, although it may see the settlement as a matter of establishing focus. After all, there's bigger fish to fry.
Immersion Corporation Announces Settlement and License Agreement with Google and Motorola Mobility Resolving Motorola Patent Litigation
SAN JOSE, Calif.--(BUSINESS WIRE)--Immersion Corporation (NASDAQ: IMMR), the leader in touch feedback technology development and licensing, today announced it entered into a settlement and license agreement with Google, Inc. and Motorola Mobility LLC, resolving the patent infringement litigation brought by Immersion against Motorola. The litigation was initiated based on Motorola's various uses of a simple form of haptic effects in its mobile devices, sometimes referred to as Basic Haptics. Under the settlement and license agreement, Immersion is receiving compensation for prior shipments of Motorola devices containing Basic Haptics technology, the parties have agreed to a license relating to future shipments of Motorola devices with Basic Haptics, and have resolved certain issues with respect to Google-branded smartphones containing Basic Haptics. The agreement does not extend to other manufacturers' handsets that use the Android operating system. As a result of the settlement, Immersion will dismiss all pending litigation between it and Motorola.
"The successful resolution of this case is a critical step in our overall strategy of enforcing and monetizing our intellectual property, including Basic Haptics, and we're pleased to achieve a settlement that is consistent with our business model, which is largely based on per unit running royalties," said Immersion CEO Victor Viegas. "We remain fully committed to enforcing our IP rights while continuing to innovate and create new technology and solutions for the mobile space. While the terms of the settlement will remain confidential and are not anticipated to have a material impact on our financial results for 2012, this settlement is a great step forward in validating the value of our IP portfolio and the investments we have made in the mobile market."