Sony Computer Entertainment
has ended its legal battle with hardware developer Immersion Corporation
after the two companies agreed to a combined legal payment and licensing deal that will cost Sony more than $195m.
The deal ends a five-year feud over Sony's use of Immersion's 'touch feedback' technology in the joystick controllers for its PlayStation and PlayStation 2 games consoles.
A jury ruled in favour of Immersion in 2004, but Sony had appealed against the decision.
A spokesperson for Immersion said that the financial deal is broken into three parts. $126m comes from the original judgment, against which Sony has agreed to withdraw its appeal.
An additional $39.6m will be paid for deferred revenue owed to Immersion over the past two years.
Finally, Sony will pay $29m as part of a new deal to license Immersion's technology through to 2009. The money will be transferred over a series of 12 payments.
Immersion chief executive Victor Viegas said in a written statement that he is "pleased to have put this litigation behind us".
Kazuo Hirai, president and group chief operating officer at Sony Computer Entertainment, added: "We are excited about our new partnership with Immersion and the potential for innovative products incorporating their technologies."