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Sony was ordered to pay a fine of $90 million to Immersion Corp for a patent infringement on game controllers that vibrate in sync with games aka Force Feedback. Sony has been asked by the courts to stop the sales of its older Playstations.

It does not affect the recently launched product called PSP, a handheld version of the PlayStation. Sony has filed an appeal and will continue to sell the older gameboxes until a ruling on the appeal is made. Apparently, the suit was brought by Immersion back in 2002.

Talking about a shot in the arm. I just checked Immersion’s annual report. They’ve lost an average of $17 million anually the last 3 years. And to get $90 million. Wow! The sad part is Sony makes good products. Sony’s other businesses, televisions and DVDs have been declining over the years. The PlayStation is now 44% of the operating profit.

Could this be another frivilous lawsuit? I don’t know. Maybe Immersion’s deserves the money for royalties that they should have been receiving if Sony worked with them. But something is wrong with this picture.

What would Immersion do with $90 million since they haven’t shown the market they can make any profit? If the suit halts Playstation sales, then it might mean losing a large chunk of Sony’s income.

Any lessons? Yes. We reward a company that doesn’t know how to make any money, then punish an innovative company that may have stolen a copyright or just stupid enough not to realize it’s infringing on a copyright.

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