PlayStation Injunction and Games Ahead

The United States District Court for Northern California has ordered Sony Computer Entertainment (Sony) to stop selling its PlayStation and PlayStation 2 game consoles in the United States and to pay nearly US $90.1 million to Immersion Corporation (Immersion) for patent infringement. The fine and injunction stem from a jury verdict handed down last September and which held that Sony had infringed two of Immersion's patents (US Patents 6,424,333 and 6,275,213) relating to "haptics" or touch-feedback technology. Such technology enables game control pads to respond or vibrate to certain game situations, for example, when a virtual machine gun is fired. The Court's latest ruling confirmed the $80.2 million damages award and added $8.7 million in pre-judgment interest. The injunction will block Sony from manufacturing, using, selling and/or importing into the United States PlayStation game consoles, Dualshock controllers (PlayStation's standard sticks) and 47 games (including the smash hit "Grand Theft Auto"), which were all found to infringe one or both of the patents. However, the Court stayed the injunction pending Sony's appeal. For the duration of the stay, Sony is to pay a compulsory license fee on its products already being sold in the United States. In 2003, Microsoft reached a $26 million settlement with Immersion over a dispute on the same technology used in its PC joysticks and other products. Sony will continue to sell its PlayStation products while its appeal is in progress. According to industry observers, it is unlikely the case will result in the removal of PlayStation from store shelves; a successful appeal or settlement between the companies will avoid that result. However, the ruling raises a broader question: whether patent holders owning the rights to a small aspect of a highly complex product gain disproportionate leverage by the granting of an interim injunction. For the District Court ruling, see: http://patentlaw.typepad.com/patent/Judgment.PDF For the District Court order entering the permanent injunction, visit: http://makeashorterlink.com/?W1B223FDA For related news reports, see: http://makeashorterlink.com/?N1C262FDA; http://makeashorterlink.com/?A2D242FDA; or http://www.cnet.com.au/games/ps2/0,39029672,40053742,00.htm Summary by: Rosa Kim