There's a lot of legal babble here, but I'll try to break it down:
Back in 2003, Immersion sued both Microsoft and Sony for the use of rumble in their controllers, as they originally held the patent for the technology. From this lawsuit, Microsoft was ordered to pay Immersion $26 million. Ouch.
However, being the sly bastards that they are, MS included a clause that required Immersion to pay them a portion of any money obtained from Sony as part of additional litigation.
Later, Sony was ordered to pay Immersion $90 million over the suit. Double Ouch. Microsoft was not paid per that earlier agreement, so they sued Immersion.
Finally, Immersion settled out by paying 20.75 million to Microsoft.
The end result? Microsoft made out like a bandit, paying in a little over $5 million for the use of rumble in their controllers. Poor Sony has to pay so much more.
[Via GamesIndustry.biz]
Dale North is Destructoid's Editor-In-Chief, a founding editor, and specialist in Japanese gaming. An accomplished musician, Dale was reporting from Japan during the earthquakes of 2011. Luckily, he got the fuck out alive and is home in America now with his wife and beloved corgi, Einstein. Dale is also a co-founder of Destructoid's sister anime site
Japanator. Likes Corgis, Sega Saturn, PSP, iPhone, Photographic tools.
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Contest:
12:40 PM on 08.27.2008
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Which of course is almost every company on Earth.
The only thing that's embarrassing is the fact that no one tried to call shenanigans on the Microsoft side when they were trying to put in clauses to reap benefits from further litigation (which, I should point out, is just fucking dirty money) and other legal matters.
Even more amazing still will be the fact that after things such as this people will still try to defend Microsoft when someone calls them lying crooked thieves.
the immersion lawyers should be much more embarrassed...
Although, I have no idea how they could have made it seem legitimate to be reaping direct monetary benefit by action against Sony.
Now I can see a difference between American and Japanese corporations
Or did Microsoft just slip it in all sly like, tiny print around the border of the contract like in The Santa Clause.
And what ballsy mother fucker even comes up with that kind of plan. I'm going to try something like this some day, if I ever get the chance. If you can get away with it why not?
it can be hard to avoid them, but with a little effort you too can fuck microsoft the same way that they fuck so many others on a regular basis
The reason Microsoft put the clause in there was because Immersion was demanding more than what Microsoft really owed them. MS paid the "fine" to Immersion, licensed the technology legally and then infused the company with some Microsoft money (bought private shares) with the stipulation that if Sony ends up settling with Immersion and licensing the tech then MS would get their money back. That all happened by Immersion decided to keep the cash infusion which rightfully pissed MS off so they sued to get their money.
It had nothing to do with being sneaky sly lawyers, it was an agreement that Immersion made in order to get extra cash, it worked out in their benefit but then THEY violated the deal and had to be sued.
To simplify think of the whole thing as a loan that Immersion decided it didnt need to pay back.
Its probable that Microsoft accepted to pay Immersion a lower sum of money quickly (26M) so that it would create a legal precedent binding Sony.
The initial lawsuit was so ridiculous that Sony and Microsoft could have fought it easily.
I don't understand why people here say Immersion lawyers were stupid: they never would have been able to sue Sony for this much without precedent. The agreement with Microsoft stated that if Sony was sued for more than a 100 million dollars (compared to the 26 m Microsoft paid), Immersion would pay back a minimum of 15 million.
Basically:
-Immersion: bastards who are now 100 M rich without actually doing anything.
-Microsoft: encourages bastards.
-Sony: got screwed.
In the end its our money (the customers) that finances these lawsuits...
...and you know. I would rather see my money being spent on great ideas.
Thank you for complimenting my intelligence but you're failing to realise that Microsoft lost $5 million dollars in the transaction. If I knocked over a liquor store, scored $500 and forgot my wallet with $600 in it but managed to evade capture I'd feel like an idiot but I'd also feel lucky to have evaded the worst possible scenario. That's what happened with Microsoft. $5 million isn't going to ruin their quarter (or even their month) but it's still significant.