In February 2002, technology developer Immersion Corp. filed a lawsuit against Sony Computer Entertainment Inc.; Sony Computer Entertainment America Inc.; and Microsoft.

1. Attorney Morgan Chu of Irell
& Manella Obtains $82 Million
for Plaintiff in Immersion v.
Sony

2. In February 2002, technology developer Immersion Corp. filed a
lawsuit against Sony Computer Entertainment Inc.; Sony Computer
Entertainment America Inc.; and Microsoft. Immersion asserted
that the defendants had infringed patent rights related to haptic
feedback technology, which uses physically manipulated control
devices such as joysticks and computer mice to transmit tactile
sensations to users interacting with a digital display, such as a
computer monitor. Immersion had been honing its engineering
efforts on the technology since 1993, entering licensing agreements
with leading global companies such as BMW, Logitech, and
Kensington.

3. Though Microsoft settled out of court in 2003, agreeing to
license the technology for $23 million and to purchase 10
percent of Immersion’s shares, Sony took the case to court.
Irell & Manella LLP partner Morgan Chu acted as lead
counsel on Immersion’s behalf in the litigation against Sony.
In 2006, the jury decided in Immersion’s favor, concluding
that Sony had, in fact, infringed the two haptic feedback-
related patents in question.

4. The jury initially awarded Immersion $82 million, with Chu’s
team requesting a permanent injunction that would have
prevented Sony from selling its patent-violating products. In
March 2007, however, Sony and Immersion reached a $150
million agreement that included the initial award, interest, legal
costs, past licensing fees treated as deferred revenue, and
quarterly payments covering licensing fees through the close
of 2009.