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  Small Silicon Valley company gets $26 million from Microsoft
Time: 19:13 EST/00:13 GMT | News Source: Associated Press | Posted By: Todd Richardson

Settling a David-and-Goliath legal battle, tiny Immersion Corp. on Monday said software giant Microsoft Corp. will pay $26 million to license technology that brings a more realistic touch to the Xbox video-game system. The agreement represents a coup for Immersion, a San Jose-based company with just $20 million in revenue after a decade in business. Besides receiving a large royalty payment, Immersion gains the cachet of Microsoft investment.

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