2017 News Virtual Reality

Oculus owes $500 million to ZeniMax

A jury has awarded a combined total of $500 million in damages to ZeniMax Media.

While the jury for the case said that Oculus did not misappropriate trade secrets from ZeniMax, they did say that Oculus co-founder, Palmer Luckey was in violation of a non-disclosure agreement (NDA) that he signed with the company back in 2012.

Oculus was also found liable for copyright and trademark infringement for misusing certain code by ZeniMax and their logos. The company itself is liable for $300 million ($50 million for trademark infringement, $50 million for copyright infringement and $200 million for breaking the NDA). Meanwhile Luckey owes $50 million and former Oculus CES, Brendan Iribe owes $150 million (both of them for false designation).

John Carmack, Oculus CTO and previously worked at ZeniMax and was accused for stealing code and destroying evidence and is not personally liable for any damages.

ZeniMax had originally sought out over $6 billion in this case.

Oculus released the following statement

“The heart of this case was about whether Oculus stole ZeniMax’s trade secrets, and the jury found decisively in our favor, we’re obviously disappointed by a few other aspects of today’s verdict, but we are undeterred. Oculus products are built with Oculus technology. Our commitment to the long-term success of VR remains the same, and the entire team will continue the work they’ve done since day one—developing VR technology that will transform the way people interact and communicate. We look forward to filing our appeal and eventually putting this litigation behind us.”

ZeniMax’s case against Oculus dates all the way back in 2014, shortly after Oculus was acquired by Facebook, and they accused Oculus of illegally using code and technology that Carmack had developed while at Id Software (which is owned by ZeniMax) and before he joined Oculus as their CTO in 2013.

By Sachin Bahal

Sachin is a talented and versatile writer with a passion for technology and loves to write about gaming, entertainment, tech and more. He started TheCanadianTechie back in 2012 to become the ultimate, independent source for tech enthusiasts or “techies”.

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