Sony be liable to infringement of a patent, PlayStation game consoles sold under threat
Sony be liable to infringement of a patent, PlayStation game consoles sold under threat United States federal judge ordered the Japan Electronics companies Sony stops in the United States selling PlayStation video game machine, to the California company and Immersion Corp. pay $ 90.7 million compensation, this ruling will affect this as an important source of Sony profits of sales of video game products.
This ruling does not immediately have an impact on the market, Auckland District Court judge delaying the implementation of this decision, Sony will file an appeal, which may take 1 year’s time.
Judge Wilken issued over the weekend on the Sony PlayStation and PlayStation 2 in the United States the manufacture, sale and import ban. The Court found that Sony violating the Immersion of the game more realistic common technical patents.
This ruling comes as Sony restructuring of management at the rally, Sony’s Howard Stringer, head of entertainment business recently appointed the company’s Chief Executive Officer. Sony hopes that video games will become a part of this reorganization. Just last week, in order to expand its video game business, the company in the United States launched the PlayStation Portable, this new mobile entertainment devices in the United States sells for $ 249.
Sony’s two games use the Court of the alleged infringement of Immersion patent technology, the technology and “force feedback” system, installing this system gaming joystick to shake to simulate different effects in the game. If mistakes in Sony’s appeal, this ruling – affirmed last September in favour of the Immersion of the jury award – many may also be refused with PlayStation game vibration function for many video games in the United States outside the market, jury finds a total of about 48 video games violates Immersion’s patents.
Immersion management said if the judge in the Sony in the process of Appeal upheld the retailers, game publishers, and other companies are likely to be affected. Immersion is headquartered in San José, California, developed and licensed for games, medical and automotive industry related technology. Immersion CEO Victor Viegas said, if you consider a permanent restraining order and its impact on the retailer or Sony’s other partners, that may spread to many companies, many industries, and many vendors.
Sony United States video game unit spokesman declined to comment on pending litigation, but confirmed that Sony plans to appeal. Sony video games as of December 31 of the most recent fiscal quarter operating profit of more than 30%.
After the company announced that the judge, Immersion in the duck market shares closed up 55 cents to us $ 6.3, or 9.6%. Sony in New York Stock Exchange-listed United States depository receipts closed flat at $ 41.16.
Lawyers and analysts said that this ruling has greatly increased the Sony seek to reach a reconciliation with Immersion, to be allowed to continue in the United States market possibilities of sales of its PlayStation video game machine. Sony Immersion model patent licence cost may be far higher than earlier because of this ruling of the cost. 3 years ago, Immersion commented on Sony’s co-accused Microsoft Corporation filed suit in July 2003, Microsoft reached a settlement with Immersion, as part of the deal, Microsoft agreed to pay US $ 19.9 million licensing fee.
Clifford Chance in the Silicon Valley intellectual property lawyer in the Office of Daniel Harris, Immersion and Sony on the motivation of dispute settlement, as 30% per cent of such judgment was overturned in the appeal. Harris said in the appeal process, both parties face many uncertainties, and are most likely to reach a settlement.
Sony is the leading manufacturer of home video game consoles, the PlayStation 2 game consoles worldwide has sold more than 82 million, while North America is the biggest market of the company’s gaming products.
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News source: the Wall Street Journal