Sony fined $90m, ordered to halt sale of Playstation's

[The Watcher]

http://www.menafn.com/qn_news_story.asp?StoryId=CqKEpueienJi4m1nVBNLMAw5LzdKWtw9Yz

TOKYO, March 28 (AFP)

TOKYO, March 28 (AFP) - Sony Computer Entertainment (SCE) said Monday it has been fined 90 million dollars and ordered to halt sales of its blockbuster PlayStation consoles in the United States due to an alleged patent infringement.

The company has been ordered to pay 90 million dollars in damages to a US tech company, Immersion Corp., but it will appeal the decision by a California federal court immediately, an SCE spokesman said.

Sony will continue to sell its PlayStations pending a ruling on the appeal, the spokesman added.

Immersion, a California-based developer of digital touch technologies, charged that Sony infringed on its technology that makes a game controller vibrate in sync with actions in the games being played, reports said.

"The order is regrettable. We would like to start appeal procedures immediately." the Sony spokesman said. "We will argue ... that we haven't committed any (patent) infringement.

The United States is a key market for Sony as it seeks to get back on track after years of resting on its laurels while its rivals have powered ahead to displace the once iconic company which changed the way the world listened to music with its Walkman portable players.

Only last week Sony launched a hand-held version of its best-selling PlayStation games console in the US market and was ramping up production to meet forecasts for PSP sales in the United States and Europe of three million units by the end of March.

The lawsuit brought by Immersion, a small tech company, was first launched in 2002 when it said it had expanded its licensees in the gaming console market with partners such as MadCatz, Saitek and others.

"These partners have developed more than 40 touch-enabled gaming peripherals currently shipping for the Microsoft Xbox and Sony PlayStation platforms," the company said at the time.

Sony is the leader in home video-game machines but the console market is dominated by Nintendo, which in December launched its DS console featuring a touch-sensitive double-screen billed as user-friendly, particularly for children.

Sony Corp. has been struggling to secure profits in the tough global market.

It has been lagging in the booming digital product market in which others such as Matsushita and Sharp have now become the dominant players.

The Walkman inventor has also lagged behind Apple, maker of the iPod, in building a new generation of portable music products.

As part of business revival plans, Sony has said Howard Stringer, head of Sony's US subsidiary and a former president of CBS News, will replace Sony career man Nobuyuki Idei as chairman and chief executive effective June 22.

Sony also picked Ryoji Chubachi, an engineer, as his deputy, promoting him to president and chief operating officer from executive deputy president.

Chubachi recently said it would be difficult for the Japanese electronics giant to hit its target of a 10 percent operating profit margin in the year to March 2007.

kue/mxs/bmm


Japan-US-Sony-PlayStation-court-company

COPYRIGHT 2005 Agence France-Presse. All rights reserved.


dissed

[Sikotic™]

Damn, that's gonna cost em.

[Da WCC Hopar!]

dats a shit load of money man like the homie said dats ganna cost um $$$$$$

[ShadyGuru]

pretty glad i've already got my playstation

[kywhiteboy]

Ouch!

[Trauma-san]

If they would have just had the balls to invent their own technology, you know, like Nintendo did with the N64 and every subsequent system they put out, including the gameboy... they wouldn't be in this trouble.  Instead, Microsoft and Sony steal some 3rd party's technology, and get slammed.  You don't see Nintendo in that suit, do you? 

[M Dogg™]

If they would have just had the balls to invent their own technology, you know, like Nintendo did with the N64 and every subsequent system they put out, including the gameboy... they wouldn't be in this trouble.  Instead, Microsoft and Sony steal some 3rd party's technology, and get slammed.  You don't see Nintendo in that suit, do you? 

Why talk about Microsoft. It's the only company in the video game wars that's from the U.S. I thought you support the home team?

[Don Seer]

If they would have just had the balls to invent their own technology, you know, like Nintendo did with the N64 and every subsequent system they put out, including the gameboy... they wouldn't be in this trouble.  Instead, Microsoft and Sony steal some 3rd party's technology, and get slammed.  You don't see Nintendo in that suit, do you? 

Why talk about Microsoft. It's the only company in the video game wars that's from the U.S. I thought you support the home team?

fo real.. trauma.. where is Microsoft mentioned in all this? we know your a Nintendo groupie.. you are blatantly dickriding and adding misinformation.. there was no mention of Microsoft till you brought it up. if they're paying the patent owner for the technology there is no problem..

and btw.. even if you 'invent' something off your own back for which a patent already exists.. you still have to pay! so your comments have no merit anyways.

[Thirteen]

Microsoft was kinda smart and they settled out of court on this issue for $43 million or some shit...Sony thinks they have a chance to beat these guys...but so far it's not looking too good