Immersion Corporation (NASDAQ:IMMR) and Apple Inc. (NASDAQ:AAPL) have entered into a definitive settlement and license agreements. The terms and conditions of the new arrangement are still not known to the public. However reliable sources have it that the agreement is likely to result in a termination of the current patent infringement lawsuits by Immersion against Apple.
It is not known what level of financial impact the global settlement will have on each firm. However, each of them has been in the public business domain and they have their secrets. For example, Immersion claims to have more than 2,600 issued or pending patents while Apple touts itself to be one of the global tech companies. Nonetheless, it is not clear how many of the patents have been licensed by Apple; whether all or just a few.
But things have not been easy between Immersion and Apple
Things have not been all rosy between Immersion and Apple. The leading innovator of touch feedback technology commonly known as haptics has had pending lawsuits over the use of its IP in mobile devices by Apple and AT&T Inc. (NYSE: T). In a lawsuit filed in a Delaware district court in February 2016, the iPhone maker was accused of having used three of Immersion’s haptic feedback patents on its iPhone 6, iPhone 6s, and Apple Watch product lines.
Other products, which are said to have infringed on Immersion’s patents include the iPhone 6s and models of the MacBook and MacBook Pro lines. The U.S. International Trade Commission has been carrying out its investigations but with the new settlement, the duo is expected to establish a more friendly business relationship and perhaps call off any impending legal action.
About Immersion Corporation
The company takes leadership in the provision of technology solutions while creating realistic experiences, which enhance digital interactions. The innovator’s technology is being used in more than 3 billion digital devices and some of its main services include advertising and automotive. The company has a global presence and it also provides medical and consumer electronics products.
Meanwhile, Apple’s stock closed at $167.96 a drop of $3.55 or 2.07% while that of Immersion stood at $10 witnessing an increase of $2.66 or 36.24%