At the time of the PS3 release they were being sued by another company over the rumble/vibration technology, so they had to take it out. It got settled and they could start releasing the dualshock 3 as originally intended.
It didnt get settled did it? Microsoft also got sued, but they settled out of court and so the 1st gen of x360 controllers had rumble/vibration. Sony fought all the way, lost, had to pay a lot of damages and then still didnt have permission to use it, until they bought it.
Googling it, it might have got settled, Sony agreed to pay the entire fee they where looking for in the courts.
On March 1, 2007, Sony Computer Entertainment and Immersion Corporation announced that both companies have agreed to end their patent litigation, and have entered a business agreement to "explore the inclusion of Immersion technology in PlayStation format products."[9] As part of the agreement reached between the two companies, Immersion will receive the full amount dictated by the District Court, which with interest is stated to total $97.2 million, in addition to royalties. On top of the $30.6 million in compulsory license fees which Sony had paid Immersion over the previous two years, Sony will make 12 more licensing payments through the end of 2009 totaling $22.5 million, during which other royalties may also be paid.[5] The agreement also provides Sony with new rights with respect to Immersion's patents. The termination of the litigation will have no material impact on Sony's consolidated earnings forecast announced on January 30, 2007.[9]