Legal Proceedings
+Added: Immersion Corporation vs.
+Added: Meta Platforms, Inc., f/k/a Facebook, Inc.
+Added: On May 26, 2022, we filed a complaint against Meta in the United States District Court for the Western District of Texas.
+Added: The complaint alleges that Meta’s AR/VR systems, including the Meta Quest 2, infringe six of our patents that cover various uses of haptic effects in connection with such AR/VR systems.
+Added: We are seeking to enjoin Meta from further infringement and to recover a reasonable royalty for such infringement.
+Added: The complaint against Meta asserts infringement of the following patents:
+Added: “System and method for providing complex haptic stimulation during input of control gestures, and relating to control of virtual equipment”
+Added: “Context-dependent haptic confirmation system”
+Added: “Haptically enhanced interactivity with interactive content”
+Added: “Haptically enhanced interactivity with interactive content”
+Added: “System with wearable device and haptic output device”
+Added: “Haptically enhanced interactivity with interactive content”
+Added: Meta responded to our complaint on August 1, 2022.
Samsung Electronics Co.
18 unchanged sentences
On December 29, 2021, we filed our rebuttal brief relating to the Korean tax authorities’ brief filed on December 1, 2021.
−Removed: On February 24, 2022, the Korea Supreme Court issued a decision affirming the rulings of the Korea High Court.
+Added: On February 24, 2022, the Korea Supreme Court issued a decision affirming the
+Added: rulings of the Korea High Court.
We believe that any impairment in the Long-term deposits associated with the rulings of the Korea High Court is appropriately reflected in the Condensed Consolidated Balance Sheets .
5 unchanged sentences
As a result of the Korea Supreme Court decision described above, we were reimbursed by Samsung in an amount equal to KRW 6,088,855,388 (approximately $5.0 million) representing Korea national-level taxes, penalties and interest that was canceled by the Korea Supreme Court.
−Removed: We expect to be reimbursed an additional KRW 608,885,000 (approximately $0.5 million) representing local-level taxes, penalties and interest that was canceled by the Korea Supreme Court.
+Added: We were also reimbursed an additional KRW 608,885,000 (approximately $0.5 million) representing local-level taxes, penalties and interest that was canceled by the Korea Supreme Court.
LGE Korean Withholding Tax Matter
1 unchanged sentence
(“LGE”) requesting that we reimburse LGE with respect to withholding tax imposed on LGE by the Korean tax authorities following an investigation where the tax authority determined that LGE failed to withhold on LGE’s royalty payments to Immersion Software Ireland from 2012 to 2014.
−Removed: Pursuant to an agreement reached with LGE, on April 8, 2020, we provided a provisional deposit to LGE in the amount of
−Removed: KRW 5,916,845,454 (approximately $5.0 million) representing the amount of such withholding tax that was imposed on LGE, which provisional deposit would be returned to us to the extent we ultimately prevail in the appeal in the Korea courts.
+Added: Pursuant to an agreement reached with LGE, on April 8, 2020, we provided a provisional deposit to LGE in the amount of KRW 5,916,845,454 (approximately $5.0 million) representing the amount of such withholding tax that was imposed on LGE, which provisional deposit would be returned to us to the extent we ultimately prevail in the appeal in the Korea courts.
In the second quarter of 2020, we recorded this deposit as Long-term deposits on our Condensed Consolidated Balance Sheets .
16 unchanged sentences
The Court had indicated that it expected to render a decision on this matter by the end of February 2022.
−Removed: However, due to a reshuffling of judges, another hearing, which was originally scheduled for April 14, 2022 is currently scheduled for July 7, 2022, at which time we believe we will have a better indication as to when the Court will render a decision on this matter.
+Added: However, due to a reshuffling of judges, another hearing, which was originally scheduled for April 14, 2022 occurred on July 7, 2022.
+Added: A thirteenth hearing is scheduled for October 27, 2022.
+Added: The Court has indicated that it expects to render a decision on this matter by December 31, 2022.
Based on the developments in these cases, we regularly reassess the likelihood that we will prevail in some or all of the claims from the Korean tax authorities.
−Removed: To the extent that we determine that it is more likely than not that we will prevail against the claims from the Korean tax authorities, then no additional tax expense is provided for in our Condensed Consolidated Statements of Income and Comprehensive Income .
−Removed: In the event that we determine that it is more likely than not that we will not prevail against the claims from the Korean tax authorities, or a portion thereof, then we would estimate the anticipated additional tax expense associated with that outcome and record it as additional income tax expense in our Condensed Consolidated Statements of Income and Comprehensive Income in the period of the new determination.
+Added: To the extent that we determine that it is more likely than not that we will prevail against the claims from the Korean tax authorities, then no additional tax expense is provided for in our Condensed Consolidated Statements of Operations and Comprehensive Income (loss) .
+Added: In the event that we determine that it is more likely than not that we will not prevail against the claims from the Korean tax authorities, or a portion thereof, then we would estimate the anticipated additional tax expense associated with that outcome and record it as additional income tax expense in our Condensed Consolidated Statements of Operations and Comprehensive Income(loss) in the period of the new determination.
If the additional income tax expense was related to the periods assessed by Korean tax authorities and for which we recorded in Long-term deposits on our Condensed Consolidated Balance Sheets , then the additional income tax expense would be recorded as an impairment in the Long-term deposits .
19 unchanged sentences
A mediation session occurred during the period of March 14-16, 2022.
−Removed: At the mediation, we entered into a binding
−Removed: settlement term sheet with Marquardt pursuant to which we agreed to cause our arbitration demand to be dismissed.
+Added: At the mediation, we entered into a binding settlement term sheet with Marquardt pursuant to which we agreed to cause our arbitration demand to be dismissed.
In exchange, Marquardt agreed to the prepayment of certain royalties otherwise payable under the Marquardt License.
Additionally on April 4, 2022, we entered into an amendment to the Marquardt License to reflect such payment and other related terms.
+Added: On May 20, 2022, the parties submitted a stipulation of dismissal to the AAA dismissing with prejudice all claims brought by us against Marquardt in the arbitration.
There have been no material changes to the risk factors disclosed in Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 25, 2022.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.