Immersion, a company specializing in haptic feedback technology, has settled a lawsuit with Meta over the use of touch feedback in its Quest VR headset.
Immersion said in a press release that it has entered into a license with Meta that allows Immersion's patents to be used in Meta and its affiliates' hardware, software, VR and gaming products. Terms of the deal were not disclosed.
“We are pleased to license Meta's haptic technology patent,” Eric Singer, president and CEO of Immersion, said in a statement. “We are excited to license Meta to bring high-quality haptics to their devices.”
Founded in 1993 and based in Aventura, Florida, Immersion's first major customer was Microsoft, with which it worked to integrate its haptic feedback and touch technology into Microsoft's DirectX API . After acquiring the haptic patent portfolio from small technology company Cybernet Systems in 1999, Immersion was listed on the Nasdaq.
In the years since its IPO, Immersion has used targeted mergers to acquire the rights to more than 1,000 haptic feedback patents, earning it a reputation as a patent troll. As of 2014, Immersion has more than 1,650 issued or pending patents in the haptics field in the United States and other countries, with the number expected to reach approximately 1,200-1,300 by the end of June 2022. decreased.
The validity of some of Immersion's patents is questionable, as a 2018 post on the Electronic Frontier Foundation blog highlighted. One of his, “Interactive Virtual Reality Performance Theater Entertainment System,” covers small adjustments to existing VR systems, such as letting players watch pre-recorded videos. However, these adjustments were not new at the time of the patent application.
Immersion filed suit against Microsoft and Sony in 2002, claiming that their game console controllers infringed two of the company's patents. Both defendants ultimately reached an agreement with Immersion that involved payments of several million dollars. Sony was forced to pay $150 million, but Microsoft chose to buy a 10% stake in Immersion and a perpetual license.
Due to Sony's loss, it has long been rumored that Sony may have released the PlayStation 3 version of the DualShock controller without rumble.
In 2016, Immersion alleged that Apple infringed two patents related to the iPhone 6s and Apple Watch. And in May 2023, Immersion sued Valve for alleged infringement related to the use of vibration in the company's Steam Deck and Valve Index VR headsets.
Interestingly, as a recent post from Seeking Alpha's Gary Bourgeault points out, Immersion's business model is neither particularly profitable nor sustainable in the long term. The company has hovered in the $30 million to $36 million revenue range for years, with large legal departments and significant overhead costs from litigation against deep-pocketed companies.
“In terms of litigation, [Immersion] “Multi-million dollar prizes are being awarded, which could temporarily boost stock prices,” Bourgeault wrote. “[B]As mentioned earlier, not many large companies change their tune if they decide to sue to protect their patents…Importantly, they have a very predictable revenue stream from fixed fees, license fees, and royalties. On the other hand, their source of income is not. It will run out when the patent expires. ”