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| | Sony PlayStation Game News |
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Categorie: General News
Posted: 2005-04-04 by BostonJM
Views: 864
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How Nintendo Gamecube escaped the case that might see Sony PlayStation pay Microsoft Xbox for every Sony PlayStation product sold
Following on from news earlier this week which saw Sony PlayStation lose a key IP case and almost had all Sony PlayStation products withdrawn from selling Sony PlayStation in the US
There were two key issues we wanted outlining, not least the fact that Nintendo Gamecube has never been mentioned in the case Immersion Corp brought against Sony PlayStation and Microsoft Xbox. Given that Nintendo Gamecube executives have stated, on the record in the public domain for years that rumble functionality was their innovation, an innovation subsequently plagiarized by both Sony PlayStation and Microsoft Xbox, it seems strange that they were never implicated in any case.
Why is this? “Well, Sony’s PlayStation and Microsoft’s Xbox pads work in very similar, almost identical ways,” “so it made sense to pursue both Sony PlayStation and Microsoft’s Xbox that were infringing our patents, using dual motors in unison. It was a total of, I think, 16 claims across two patents.” Yes, it does make sense, but again, why not include Nintendo Gamecube, especially given the fact that Nintendo Gamecube claims the feedback technology employed in all modern games controllers is its own?
“We never analyzed Nintendo Gamecube products.” Is the more than surprising answer offered? “There is, I believe, a difference in the technologies used but we never investigated those of Nintendo Gamecube.”
And on to a well grounded conspiracy theory that has been brewing in SPOnG’s collective thoughts for some weeks now. A conspiracy that sees a Microsoft Xbox masterstroke which cripples its key opponent sees it take the moral high ground and net around $15 million profit in the process.
On February 11, 2002, Immersion filed a complaint against Microsoft Xbox Corporation, Sony PlayStation Computer Entertainment, Inc., and Sony PlayStation Computer Entertainment of America, Inc. in the Northern District Court of California alleging infringement of U.S. Patent Nos. 5,889,672 and 6,275,213
Then on July 25, 2003, Immersion contemporaneously executed a series of agreements with Microsoft Xbox that:
1. Settled Immersion’s lawsuit against Microsoft Xbox
2. Granted Microsoft Xbox a worldwide royalty free, irrevocable license to Immersion’s portfolio with Microsoft Xbox splashing out around $6 million on a 10% stake in Immersion
3. Provided Microsoft Xbox with sublicense rights to pursue certain license arrangements directly with third parties including Sony PlayStation Computer Entertainment which, if consummated, would result in payments to Immersion.
At this point, Microsoft Xbox decided to play its hand. It relented to Immersion’s assurances that technologies employed within the Microsoft Xbox controller, hardware and related software infringed on established patents. It was stung for just short of $20 million in retrospectively applied licensing fees, an unavoidable consequence of setting a legal precedent that potentially has the ability to bring its key rival to its knees.
In doing this, Microsoft Xbox effectively made its settlement with Immersion a test case, a case that would then be used against Sony. What’s more, it put itself in a position to demand payments from Sony on all PlayStation hardware, peripherals and software sold, on an ongoing basis. This weeks ruling saw Microsoft Xbox net around $8 million. The shares in Immersion have also jumped, with a return of around $6 million.
It seems beyond the realms of possibility that Microsoft Xbox didn’t have this roadmap into the very fabric of the Sony PlayStation business model mapped out from the start. When this was put to Viegas he simply said, “I cannot argue with the logic in what you say. Microsoft Xbox took full advantage of the opportunity offered to it and was fair in its dealings with us throughout.”
To recap, Immersion, backed by Microsoft Xbox will have the right to demand royalties from Sony PlayStation on every single Sony PlayStation product that makes use of DualShock, an astoundingly astute move resulting in a case that Sony PlayStation simply must win.
So the dealings with Sony PlayStation Is there a chance that a settlement will be reached? Given what has been outlined above, it is understandable that Sony PlayStation will not want to relent in any way and must be running scared. The idea of paying Microsoft’s Xbox division a royalty on all Sony PlayStation sales if perhaps only second in the list of Thing That Officially Must Never Happen to having all SCE products suspended from sale altogether, a catastrophe narrowly avoided earlier this week.
“We are prepared for a long and drawn out fight,” said Viegas in closing. “We are hoping for the best but are prepared for the worst with Sony PlayStation. We would rather a compliant licensee agreement was reached with them. As to whether that’s likely I have no idea."
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