Internet Services LLC Seeks More Partners for Rumble Applications
The 3rd party in Immersion’s long court battle with Sony Computer Entertainment (SCE) is looking for more partners to introduce new online applications it is developing using Immersion’s haptic/force feedback technology. Internet Services LLC “hopes to have deals in place later this year so that consumers can begin to enjoy the results” of its development efforts, the company’s pres., Layne Britton, told Consumer Electronics Daily Fri.
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Internet Services is developing systems, methods and applications using haptics that “enhance the user experience for communication and fun over the Internet,” said Britton. “Some of these experiences can be had with something as simple as a traditional handheld mouse that vibrates at appropriate times,” he explained.
But no deals have been signed with major companies, we were told. “There have been demonstrations to AOL, Yahoo, MSN, Playboy, among other companies, for experiences such as ads, games, music, video and chat,” Britton told us. He called haptics “an emerging market” and said “it takes much time and effort and some trial & error to create useful and enjoyable services that can reach consumers.”
Internet Services “has enjoyed working with Immersion in the past” and despite its ongoing court battle with Immersion, “looks forward to continuing working with Immersion,” said Britton. It was unclear Fri. whether Immersion has the same attitude.
Immersion CEO Vic Viegas told us in Oct. he believed Internet Services “opportunistically” jumped into the case. He said the companies’ deal gave Internet Services exclusive rights only to use rumble technology to create Web pages and online games aimed at adults, not rights to all “age- restricted” games using the technology as Internet Services claimed.
Also unclear Fri. was whether anything in the Immersion- Internet Services deal could result in Internet Services’ losing its rights to use Immersion’s haptic technology. Terms of the deal “are confidential,” Britton said Fri., adding “companies sometimes hit bumps in the road; they fix them and keep working.”
SCE last month ended its long court fight with Immersion (CED March 5 p6), but we learned last week that Internet Services vowed to fight on, seeking a share of the money that Immersion is receiving from Sony (CED April 5 p7).
Internet Services said the deal it signed with Immersion in late 2000 assigning it exclusive rights to rumble technology used in age-restricted games made it a co- plaintiff in the case, entitling it to a cut of damages awarded Immersion (CED Oct 4 p3). Internet Services paid more than $800,000 to Immersion through early Oct. under a “broad license” deal they signed, according to court papers filed by Internet Services.
Immersion had sued Sony for infringement, claiming popular PlayStation DualShock controllers and other PlayStation and PS2 products violated Immersion patents. In Sept., a Cal. jury ruled for Immersion, awarding it $82 million in damages (CED Sept 23/04 p11). A federal district court judge added $8.7 million, raising the award to $90.7 million (CED March 29/05 p2). Sony appealed, but last month it and Immersion issued a joint statement saying they “agreed to conclude their patent litigation” at the U.S. Court of Appeals, Federal Circuit, and “entered into a new business agreement to explore the inclusion of Immersion technology in PlayStation format products.” Sony will pay Immersion the full district court award, they said.
The appeals court ruled Wed. that Internet Services “cannot pursue further recovery from Sony based on the same alleged acts of infringement” of Immersion patents 6,275,213 and 6,424,333. The court affirmed the district judge’s dismissal of the claims between Internet Services and Sony. The judge also dismissed Internet Services’ cross claims against Immersion, ruling that Internet Services needed standing to sue Sony as a co-plaintiff with Immersion to maintain the cross claims against Immersion. But the appeals court rejected the district judge’s “rationale” for that ruling “to the extent that it required” Internet Services to “have standing to sue for patent infringement as a prerequisite to recovering on its contract claims against Immersion.” Because the district judge dismissed Internet Services’ contract claims without prejudice, Internet Services is “free to file any claims arising under the licensing agreement” with Immersion “in the appropriate forum,” the appeals court ruled.
Internet Services intends to do just that, an attorney representing the company told us Wed. “We will be pursuing our claims against Immersion for our share of the judgment” because the appeals court “clearly rejects the District Court’s reasoning and… makes it clear that we have the right to sue under the license agreement for our share of the judgment,” said Mark Lemley, a professor at Stanford Law School. Immersion declined to comment.