Immersion Corporation appears to be the latest publicly traded IP licensing company that is being pushed by large investors to consider strategic alternatives. On June 3, hedge fund VIEX Capital Advisors—which holds a 10.3% stake in Immersion—filed a Schedule 13D in which it described Immersion’s shares as being “materially undervalued” and called for “significant and immediate improvements” to Immersion’s “corporate governance, cost structure and capital allocation”.
Approximately one year after the Federal Circuit reversed an adverse result in a prior case filed against HTC, publicly traded Immersion Corporation has revived its litigation efforts, filing suit in early July against Fitbit (5:17-cv-03886) and now in early August against Lenovo (Motorola Mobility) (1:17-cv-01081) and Samsung (2:17-cv-00572). Immersion pleads that it “owns and licenses a broad portfolio of pioneering patents related to the use of haptics technology” and that both Motorola Mobility and Samsung are past licensees of its patents that chose not to renew their licenses. “Haptics technology” and “haptic feedback” are the plaintiff’s terms for touch or tactile sensations provided to the user of an electronic device. Immersion targets “haptic sensations” (e.g. vibration) provided to the user of the defendants’ mobile devices, particularly in response to use of a touchscreen.