Immersion Reaches Settlement On Lawsuit
SAN JOSE, Calif. (AP) -- Immersion said Tuesday that it has reached a settlement and license agreement with Google Inc. and Motorola Mobility LLC that resolves a patent infringement lawsuit it brought against Motorola.
Immersion's stock surged $1.01, or 21.5 percent, to $5.70 in morning trading. The shares have traded in a 52-week range of $4.15 to $7.50.
Immersion, a provider of touch feedback technology also known as touchsense haptics, said that the lawsuit was based on Motorola's use of haptic effects in its cell phones.
As part of the settlement and license agreement, Immersion Corp. will receive compensation from previous shipments of Motorola devices containing basic haptics technologies. The companies have agreed to a license that covers future shipments of Motorola devices with basic haptics and resolved certain issues related to Google-branded smartphones with basic haptics.
The agreement does not include other manufacturers' handsets that use the Android operating system.
Immersion said that it will dismiss all pending litigation against Motorola as a result of the settlement.
Immersion CEO Victor Viegas said in a statement that the settlement is not expected to have a material impact on its 2012 financial results.