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Immersion win $82.0m from SCE, prohibition of PlayStation near?

Suikoguy

I whinny my fervor lowly, for his length is not as great as those of the Hylian war stallions
dem said:
Man.. Microsoft is awesome....

Come on... how could you not admire the stuff they do??

There are smart business tactics, then there are evil devil tactics.
 

Deg

Banned
dem said:
Man.. Microsoft is awesome....

Come on... how could you not admire the stuff they do??

I dont think anyone questions MS's sleaziness ;) If their Xbox executives were so good they wouldnt be losing so much money over Xbox in proportion to the amount they have sold.
 

P90

Member
Justin Bailey said:
So if this goes through it means Sony will have to pay Immersion royalties for every DS controller they build? So more money out of consumer pockets? Yay.

No, unlike Nintendo and MS, Sony cares about gamers.
 

P90

Member
cja said:
$82m excludes interest and lawyer fees. The judgement is only applicable in the US. This could lead to potential lawsuits in the rest of the world. More problematic for Sony could be the ongoing royalty fees if their appeal fails.

The attorney fees could easily be 8 figures as well when all is said and done.
 

GashPrex

NeoGaf-Gold™ Member
Suikoguy said:
There are smart business tactics, then there are evil devil tactics.


:lol if you think this is "evil devil tactics"

I hope you never think about any sort of bussiness career. Some of you simply have no idea.
 

Raven.

Banned
This is why I hope that by divine justice MS ends in third next gen, and ends up selling their gaming division to nintendo.
 

kaching

"GAF's biggest wanker"
cja said:
$82m excludes interest and lawyer fees. The judgement is only applicable in the US. This could lead to potential lawsuits in the rest of the world. More problematic for Sony could be the ongoing royalty fees if their appeal fails.
Not to mention that a successful injunction would require refitting the dual shock line of controllers, wouldn't it? And wouldn't there be potential repercussions for 3rd party controller vendors?

GashPrex said:
I hope you never think about any sort of bussiness career. Some of you simply have no idea.
A business career doesn't require that one act without scruples, Gash.
 

DarienA

The black man everyone at Activision can agree on
P90 said:
I was being sarcastic. They ALL want your money. But some here think Sony is some saintly company.

Ah yes... is it now time to rationale this business move by saying hey... every company does it?
 

P90

Member
DarienA said:
Ah yes... is it now time to rationale this business move by saying hey... every company does it?

Darien, Darien, Darien. I'm not saying this apparent, I'm not an attorney and I maybe misinterpreting what the documentation actually means, MS practice is a "good" thing at all. Nearly all large companies engage in less than moral practices. Sony is not exempt:

Exhibit a

Exhibit b



Exhibit c

Want more?
 

GashPrex

NeoGaf-Gold™ Member
kaching said:
A business career doesn't require that one act without scruples, Gash.

you think this is acting without scruples?

How about investing in a company which holds a key patent in an industry that you are heavily involved in that is taking a competitor to court. Not taking advantage of that opportunity would be borderline retarded.
 

DarienA

The black man everyone at Activision can agree on
P90 said:
Darien, Darien, Darien. I'm not saying this apparent, I'm not an attorney and I maybe misinterpreting what the documentation actually means, MS practice is a "good" thing at all. Nearly all large companies engage in less than moral practices. Sony is not exempt:

Exhibit a

Exhibit b



Exhibit c

Want more?
Yes please one more.... one involving Sony Computer Entertainment please. You reference the popular Sony Music one... which was an attempt to manipulate reviews and customers going to the movies. You then referenced Movielink which is a joint movie distribution project, which... was a joint project, you then reference another Sony Music product. Can you please link me the outcomes of all 3 as well? And can you give me one that shows Sony using other company's to do their dirty work while you're at it? Thanx!
 

jedimike

Member
norinrad21 said:
I have finally witness PURE EVIL

I'm not seeing any evil here...

Immersion threatens to sue MS and Sony for patent infringements. MS (already overwhelmed with legal issues) decides to settle... Sony doesn't.

MS sees a golden opportunity... a company that owns a patent on a lot of shit, so they invest in said company.

Meanwhile, Sony decides to fight the patent (based on the vagueness) and loses.
 

DarienA

The black man everyone at Activision can agree on
jedimike said:
I'm not seeing any evil here...

Immersion threatens to sue MS and Sony for patent infringements. MS (already overwhelmed with legal issues) decides to settle... Sony doesn't.

MS sees a golden opportunity... a company that owns a patent on a lot of shit, so they invest in said company.

Meanwhile, Sony decides to fight the patent (based on the vagueness) and loses.

Hey Mike you forgot about the part where MS and Immersion strike a deal where in the public MS pays Immersion 20+ mil, and in the background makes a deal with Immersion where Immersion continues to sue Sony and if they win MS gets back the money it paid Immersion +.
 

Lazy8s

The ghost of Dreamcast past
HEADLINE: Microsoft Charged with "Suing by Proxy" with a Lawsuit Filing They Weren't Even Involved In!

"When asked how a company could be held responsible for an action that predated their involvement, internet pundits responded, 'Microsoft is devilishly crafty like that.'

Seriously though, there is nothing unscrupulous about securing the rights of the technology being licensed. If at all possible, that's precisely the option any licensee prefers for the IP they license to prevent themselves from being at the mercy of the original IP holder to periodically renegotiate terms.

Immersion already had suit against Sony before Microsoft made their investment. It's only that Sony was not vigilant enough in securing the rights of the IP they were infringing. Sony is no more morally exempt from being sued than Microsoft was.

As a sublicensor of the technology, Microsoft has every right to be an indirect party to the suit... kind of like what Sony did to SEGA through Rambus back when the Dreamcast had a successful launch.
 

jedimike

Member
DarienA said:
Hey Mike you forgot about the part where MS and Immersion strike a deal where in the public MS pays Immersion 20+ mil, and in the background makes a deal with Immersion where Immersion continues to sue Sony and if they win MS gets back the money it paid Immersion +.

...and you also forgot the part about Microsoft paying off all of Immersions debts, lending them another $9M, and then funding the next generation of Force Feedback Technology. Not to mention, the price of their stock rose over 300% in one day.

Immersion certainly got a lot more from MS than $26M...
 

DarienA

The black man everyone at Activision can agree on
Lazy8s said:
As a sublicensor of the technology, Microsoft has every right to be an indirect party to the suit... kind of like what Sony did to SEGA through Rambus back when the Dreamcast had a successful launch.

Links? I'd like to read about the Sony Sega Rambus deal. And indirect party? MS getting cash from Immersion for a succesful lawsuit doesn't sound too indirect.

jedimike said:
...and you also forgot the part about Microsoft paying off all of Immersions debts, lending them another $9M, and then funding the next generation of Force Feedback Technology. Not to mention, the price of their stock rose over 300% in one day.

Immersion certainly got a lot more from MS than $26M...

And MS certainly got a lot more from Immersion than just paying them to go away. Let's be real the deal helped both MS and Immersion. Immersion recieved a MUCH needed cash infusion. MS at the very least received access to new patents, always good for printing future money when those patents need to be licensed out, and as a stockholder they also reaped the dividends of having Immersions stock go up.
 

P90

Member
DarienA said:
Yes please one more.... one involving Sony Computer Entertainment please. You reference the popular Sony Music one... which was an attempt to manipulate reviews and customers going to the movies. You then referenced Movielink which is a joint movie distribution project, which... was a joint project, you then reference another Sony Music product. Can you please link me the outcomes of all 3 as well? And can you give me one that shows Sony using other company's to do their dirty work while you're at it? Thanx!

Now I see. Unless it is the exact same offense, it doesn't count as wrong practice, according to you. Kinda like stealing is wrong. Killing isn't stealing. So, killing isnt' wrong. Great moral logic you got there.

Sony is Sony, no matter the division.
 

User 406

Banned
P90 said:
Nearly all large companies engage in less than moral practices.

Yep, just like I said, this excuse comes up like clockwork.

P90 said:
Sony is not exempt:

Exhibit a

Exhibit b

Exhibit c

Want more?

Yeah, how about a couple hundred more, which would be closer to the scale of Microsoft's depradations. By the way, from Exhibit b, "Department Does Not Find that the Joint Venture Harms Competition or Consumers" has a slightly different connotation than something like, say, "Microsoft Convicted of Antitrust Violations", just for future comparisons. :p
 

maskrider

Member
P90 said:
Now I see. Unless it is the exact same offense, it doesn't count as wrong practice, according to you. Kinda like stealing is wrong. Killing isn't stealing. So, killing isnt' wrong. Great moral logic you got there.

Sony is Sony, no matter the division.

Yeah, if USA is wrong, so everyone in USA is wrong. Great moral to you, too.
 

DarienA

The black man everyone at Activision can agree on
P90 said:
Now I see. Unless it is the exact same offense, it doesn't count as wrong practice, according to you. Kinda like stealing is wrong. Killing isn't stealing. So, killing isnt' wrong. Great moral logic you got there.

Sony is Sony, no matter the division.

You do realize that until realize Sony wasn't Sony? Each division has been run pretty much as it's own company hell that's one of the reasons so many SCEE titles did not come to the US via SCEA. They were for the most part run as standalone units. I'm not looking for an same exact offense, we've debate the Sony Pictures review thing here awhile go.. it was wrong. Does that make what MS is pulling any less wrong? Is it more wrong? Sony attempted to manipulate people in to seeing a movie... MS struck a deal to continue a lawsuit against a competitor, help fund that competitor and take a cut of the winnings... I guess each of us has to decide which is more wrong... both certainly suck, but is it not possible that one might be a bit more heinous than the other?

As I asked before could you find the results of the movielink lawsuit? Last I heard Movielink still exists.... did it force them to change pricing or something along those lines?

jedimike said:
Exactly. What the hell is evil about that? Sony execs just weren't bright enough to see the opportunity.

There is not a rolleyes big enough....
 

cja

Member
kaching said:
Not to mention that a successful injunction would require refitting the dual shock line of controllers, wouldn't it? And wouldn't there be potential repercussions for 3rd party controller vendors?
Logistical nightmare, Sony europe dealt with a similar problem when they had to replace controller leads. Sony would surely settle the case asap if the judge does look like granting an injunction. Not sure why 3rd parties should have a problem, Immersion's website lists the likes of Logitech, Madcatz, Gravis, Microsoft, Saitek, Thundermaster, Nyko and others as licensees (here & here).
 

MASB

Member
Panajev2001a said:
I find this Microsoft settling a bit weird... first they fill SCO with cash settling so early for something they would not have had a real problem anyway (SCO's case is not that strong and never was really strong) and then SCO fired lawsuits away at corporations... including IBM and the Linux operating system in general (uhm...).

Now, we see something similar...

I am not claiming ill will in Microsoft, just that this is the second time they settle early with a huge payoff and then the company they settled with goes to attack one of their main competitors.
Yeah, I think pretty much everyone agrees that the whole SCO case was funded by Microsoft. Thankfully, they had no case at all, so money down the drain for MS. The problem is, MS has so much money, they can pull lots of stunts like that and never suffer any real consequences. It's worth it for them since they're more likely to sue a competitor out of existance. Takes less money to do that than to actually compete with their competitors. :p

As for this Sony case, I don't know where that will end up, but it'll be interesting if Immersion and MS can do Sony some real harm or not.
 

Lazy8s

The ghost of Dreamcast past
DarienA,
I'd like to read about the Sony Sega Rambus deal.
Basically, an injunction was sought against Dreamcast more conspiculously than other allegedly infringing RAM products, and suit was brought against SEGA, Hitachi and any other party that could possibly be sued related to the console. And just as Microsoft benefits from this current situation while being within legal entitlement and rights, Sony could've stood to benefit without anti-competitive involvement by proxy from the suit of their partner Rambus.
And indirect party? MS getting cash from Immersion for a succesful lawsuit doesn't sound too indirect.
Indirect, meaning their share of the money as a sublicensor would be channeled to them through the company who actually won the lawsuit.
 

DarienA

The black man everyone at Activision can agree on
Lazy8s said:
Basically, an injunction was sought against Dreamcast more conspiculously than other allegedly infringing RAM products, and suit was brought against SEGA, Hitachi and any other party that could possibly be sued related to the console. And just as Microsoft benefits from this current situation while being within legal entitlement and rights, Sony could've stood to benefit without anti-competitive involvement by proxy from the suit of their partner Rambus.

Ok I've just read a few places about the lawsuit so I see Rambus was suing basically anyone involved in what it thought were patent infringements but how does this tie back in to Sony? I don't see them mentioned anywhere? Sony used Rambus technology in the PS2 but was not targetted by Rambus.... are their any quarterly reports or news items from Rambus showing that Sony made any types of investments in them?
 

kaching

"GAF's biggest wanker"
GashPrex said:
you think this is acting without scruples?

How about investing in a company which holds a key patent in an industry that you are heavily involved in that is taking a competitor to court. Not taking advantage of that opportunity would be borderline retarded.
Gash, this isn't simply about investing in a company that holds a key patent. MS brokered a specific deal as part of their settlement proceedings with Immersion to benefit from any compensation Immersion may receive as a result of a settlement with Sony. If you accept that both MS and Sony were initially in the wrong for patent infringement then how can you consider it scrupulous for either company to attempt to benefit *directly* from the settlement against the other or, for that matter, for any external party to do the same?
 

Lazy8s

The ghost of Dreamcast past
DarienA,
Ok I've just read a few places about the lawsuit so I see Rambus was suing basically anyone involved in what it thought were patent infringements but how does this tie back in to Sony? I don't see them mentioned anywhere?
The thing is that Rambus wasn't suing everyone with allegedly infringing IP, so a suit specifically targeting Dreamcast at the time brought the reasoning into question. Here's a piece on industry reaction at the time:

"Industry observers have said Rambus may eventually have to take on all of the many manufacturers and OEMs that use clock-timing technology, or face accusations of singling out one company. Rambus has a vested interest in the lucrative console market, in particular, because it supplies memory technology for Sony's PlayStation2, a direct Dreamcast competitor."
http://news.zdnet.co.uk/hardware/0,39020351,2077958,00.htm
 

maskrider

Member
Lazy8s said:
DarienA,

The thing is that Rambus wasn't suing everyone with allegedly infringing IP, so a suit specifically targeting Dreamcast at the time brought the reasoning into question. Here's a piece on industry reaction at the time:

"Industry observers have said Rambus may eventually have to take on all of the many manufacturers and OEMs that use clock-timing technology, or face accusations of singling out one company. Rambus has a vested interest in the lucrative console market, in particular, because it supplies memory technology for Sony's PlayStation2, a direct Dreamcast competitor."
http://news.zdnet.co.uk/hardware/0,39020351,2077958,00.htm

So, where is the link for that suit in particular. From what I knew, RAMBUS sued many companies except its licensees.
 

DarienA

The black man everyone at Activision can agree on
Lazy8s said:
DarienA,

The thing is that Rambus wasn't suing everyone with allegedly infringing IP, so a suit specifically targeting Dreamcast at the time brought the reasoning into question. Here's a piece on industry reaction at the time:

"Industry observers have said Rambus may eventually have to take on all of the many manufacturers and OEMs that use clock-timing technology, or face accusations of singling out one company. Rambus has a vested interest in the lucrative console market, in particular, because it supplies memory technology for Sony's PlayStation2, a direct Dreamcast competitor."
http://news.zdnet.co.uk/hardware/0,39020351,2077958,00.htm

Ok but here's the difference as I see it. Rambus may have targeted Hitachi and Sega... they didn't just sue Sega, they sued Hitachi and then added Sega to the list.

Rambus sued Hitachi what Jan of 2000? Other DRAM OEM's claim the Hitachi lawsuit outcome could be the basis for additional lawsuits based on its outcome. Hitachi then settled with Rambus after Rambus added Sega to the lawsuit from the news articles I've just googled. A few other providers including Toshiba also agreed to pay Rambus licensing fees... There aren't any news reports or even quarterly Rambus statements that show Sony getting any monetary benefits or even a slice of Rambus, they licensed Rambus tech again for the PS3. Could there be an indirect deal in place? Maybe but nothing as direct as the MS/Immersion deal where it says right in the quarterly statement MS gets a slice of any proceeds from the lawsuit Immersion has with Sony if they win.
 

Lazy8s

The ghost of Dreamcast past
maskrider:
Yeah, if USA is wrong, so everyone in USA is wrong. Great moral to you, too.
If company representatives only marginally and arbitrarily represent their companies, then it would be said that Microsoft has never done anything wrong... it was all the work of those various people working at various positions within the company.

kaching:
MS brokered a specific deal as part of their settlement proceedings with Immersion to benefit from any compensation Immersion may receive as a result of a settlement with Sony. If you accept that both MS and Sony were initially in the wrong for patent infringement then how can you consider it scrupulous for either company to attempt to benefit *directly* from the settlement against the other or, for that matter, for any external party to do the same?
It's Microsoft's entitlement, espeically from companies that are competing against them with infringing technology, as a sublicensor for IP that they were actually vigilant enough to secure. It has normally been Sony's PlayStation business model to make their own parts and own the rights to the IP in most of the pieces of their system; the reasoning is, in large part, to prevent themselves from being at the mercy of licensors and suppliers.
 

kaching

"GAF's biggest wanker"
Had MS been an exisiting sublicensee at the time that Immersion brought suit against Sony, there'd be no dispute as to their entitlement, Lazy. But they were equally infringent upon Immersion technology at that time.
 

Lazy8s

The ghost of Dreamcast past
kaching:
Had MS been an exisiting sublicensee at the time that Immersion brought suit against Sony, there'd be no dispute as to their entitlement, Lazy. But they were equally infringent upon Immersion technology at that time.
But there's nothing unethical about that because Microsoft and Sony weren't 'partners in crime' for infringement, so it's not as if their actions amount to turning their back on Sony or anything unscrupulous in the practice of business.
 
mashoutposse said:
I can't front, MS is run by some very smart and crafty individuals.

I feel the same way... at least in this case. Maybe Sony should've settled earlier.

I wonder if this affects next gen hardware design by Sony.
 

kaching

"GAF's biggest wanker"
Lazy,

Someone found guilty of a wrongdoing who then immediately turns to benefit directly from an existing but unassociated accusation of the same kind of wrongdoing doesn't fit any definition of ethical that I'm familiar with.
 

cja

Member
Quickie notes about the jury verdict from Immersion's conference call.

Jury of 9 (6 women, 3 men) had to return a unanimous verdict for Immersion to win, they did.

$82m in damages is for August 2001 - June 2004. Sony will be liable for payments after this period and for ongoing royalties.

Immersion had requested $299m if they were to win the case. Sony thought the worth, if found liable, to be $9.4m if both patents were upheld, $5m for just one.

The Playstation, Dual Shock [failed to specify whether they were referring to PS1 and/or PS2, DS1 and/or DS2] and 47 games were given as infringing products (later mentioned 47 games was all that time allowed). A handful of games were found to infringe just one rather than both patents. All other games and hardware were found to infringe 16 claims in the two patents.

It has cost Immersion $16m in legal fees since proceedings began in 2002, $7m this year alone. If Sony do appeal in federal circuit court this will typically take 18-24 months. Appeal process may 'only' cost $1m.

$20m was a figure that an analyst mentioned for interest payments. Immersion couldn't comment since the judge decides that amount but would "aggressively pursue the matter".

An analyst did ask about possible action against other companies, using Nintendo and Sega as examples. Immersion said they couldn't comment on how the jury decision will influence negotiations with other companies.

Immersion confirmed that Microsoft do not give them any royalties and MS may be due payments depending on the final outcome of the Sony case (actually told the analyst who asked the question to refer back to "Note 6"). Immersion said the Sony case was quite different since it had gone to trial.

Sony were not found to have wilfully infringed the patents. The damages are compensatory, not punitive.


Immersion sounded quite conciliatory towards Sony in the call, perhaps open to a settlement with Sony now rather than dragging the process on further. Maybe Sony'll sign a deal and that money will be used to go after Nintendo. :p
 

DCharlie

And even i am moderately surprised
so, they sue MS and Sony, MS settle and given them loads of money...

then it's suddenly a conspiracy that they are suing sony??

Um... didn't they sue *or motion to sue* both companies BEFORE they were helped out cash wise by MS?
How does that fit in to everyones rumour mongering?
Does anyone have any hard evidence as to how MS influenced there patent infringement cases or is it, as i suspect, the usual "defend sony, MS are evil" fucking BULLSHIT... AGAIN?
 

DarienA

The black man everyone at Activision can agree on
DCharlie said:
so, they sue MS and Sony, MS settle and given them loads of money...

then it's suddenly a conspiracy that they are suing sony??

Um... didn't they sue *or motion to sue* both companies BEFORE they were helped out cash wise by MS?
How does that fit in to everyones rumour mongering?
Does anyone have any hard evidence as to how MS influenced there patent infringement cases or is it, as i suspect, the usual "defend sony, MS are evil" fucking BULLSHIT... AGAIN?

Wait you mean reading the fuckin agreement right in Immersions own quarterly report isn't enough of a pointer for for you?
 
Meh...much ado about nothing.

The case is clear. This is Sony's bed and they'll have to sleep in it. They will have to settle, regardless of what transpired between MS and Immersion. The suit was filed against both. MS took the easy and more sensible way out and Sony's dragging their heels.
 

Drek

Member
Yawn. Big deal. All that'll probably end up happening is Sony'll appeal and win at one of the several higher levels where a legally educated person or peoples will decide, not a bunch of morons (i.e. 70% of this country). The legally educated shoot this down just because they don't want Immersion's tricky wording to set a precident, the all important aspect of U.S. law. Might get all the way to the Supreme Court, but at one point we'll get a judge who'll put a stop to this for the betterment of business (10 to 1 odds he/she is a republican).
 

DCharlie

And even i am moderately surprised
"Wait you mean reading the fuckin agreement right in Immersions own quarterly report isn't enough of a pointer for for you?"

i'm absolutely sure it doesn't lay out all the bullshit you guys are peddling.
 

P90

Member
Sea Manky said:
Yep, just like I said, this excuse comes up like clockwork.



Yeah, how about a couple hundred more, which would be closer to the scale of Microsoft's depradations. By the way, from Exhibit b, "Department Does Not Find that the Joint Venture Harms Competition or Consumers" has a slightly different connotation than something like, say, "Microsoft Convicted of Antitrust Violations", just for future comparisons. :p

I'm not supporting MS' practices at all.Get that through your thick biased heads right now. Nintendo. MS. Sony. All are guitly of pushing the ethical envelope. Some more than others. Funny, but MS has also given the most money to charity. Guilty conscience? Or seeking redemption? Better than Sony or Nintendo when it comes to giving.

Also Sony and DOJ search:

Sony/DOJ
 
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