Immersion Corp (IMMR.O), which develops and licenses touch feedback technology, said it will pay $20.75 million to software maker Microsoft Corp (MSFT.O) as part of the settlement of a litigation.
The companies agreed to resolve Microsoft's claim under a 2003 sublicense agreement, as well as Immersion's counterclaim that Microsoft breached a confidentiality agreement dated May 2007, Immersion said in a statement.
Additionally, Immersion will be admitted to Microsoft's Certified Partner Program. Other terms of the settlement are confidential, Immersion said.
Immersion makes touch feedback technology for devices ranging from video games and medical equipment to automotive controls and mobile phones, such as those from LG Electronics (066570.KS) and Samsung Electronics (005930.KS).
Shares of Immersion were trading at $6.67 after the bell. They closed at $6.47 Tuesday on Nasdaq.
(Reporting by Purwa Naveen Raman in Bangalore; Editing by Deepak Kannan)