Immersion Stock Soars on Google Settlement
SAN JOSE, Calif. — 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 certain feedback effects in its cell phones.
As part of the agreement, Immersion Corp. will receive compensation from previous shipments of Motorola devices containing the technologies. The companies have agreed to a license that covers future shipments of Motorola devices and resolved some issues related to Google-branded smartphones.
The agreement does not include other manufacturers' handsets that use the Android operating system.
Immersion said 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.