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PlayStation ban in US , Sony fined $90 million

OUT-LAW News, 29/03/2005
Sony Computer Entertainment has been fined $90 million by a US district court in a patent case over a vibrating PlayStation controller. The ruling also prohibits the sale of the PlayStation and PS2 in the US , but the ban has been stayed pending an appeal.
Immersion Corporation, a developer and licensor of what is known as haptic feedback technology, which can be used to make joysticks vibrate in synch with on-screen events, sued Sony in 2002, alleging that the PlayStation, PlayStation 2, and associated controllers, accessories and software games that include touch feedback, infringed on two of Immersion's patents.
In September last year a jury found in favour of the developer and awarded Immersion $82 million in damages. Last week the US Court for the Northern District of California increased the award to $90.7 million, to take account of interest due. The Court also issued a permanent injunction against the manufacture, use, sale, or import into the US of the infringing systems, but stayed the ban pending an appeal.
The Court further ordered Sony to pay a compulsory licence fee for the duration of the stay of the ban.
"The Court-ordered permanent injunction to stop the shipment and sale of infringing products in the US is an important indicator of the strength of our case and the potential risks involved in this litigation," said Immersion CEO Victor Viegas.
"The compulsory license during the stay of the injunction creates a binding obligation for Sony to compensate us for the continued use of our technology in their PlayStation products. We have always believed, and continue to believe, in the strength of our intellectual property. We remain confident of our position in the appeals process," he added.
According to reports, sources at Sony have confirmed that the electronics firm will appeal the ruling.
Immersion has already settled a similar claim in 2002 against Microsoft over the use of haptic technology for its Xbox console. According to a joint statement from the companies in July 2003, Microsoft made a payment of $26 million for licensing rights and an equity investment, as well as a $9 million convertible debenture from Immersion with 48 months draw down rights.

 

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