Oculus Rift Loses Lawsuit To ZeniMax, Must Pay $500 Million In Damages

Jury finds ZeniMax's case to hold up to scrutiny.

Posted By | On 02nd, Feb. 2017

It looks like ZeniMax has managed to win its case against Oculus Rift and Palmer Luckey, successfully establishing that the pioneering VR firm did in fact impinge on ZeniMax’s own proprietary VR tech in trying to bring their product to the market. According to the judgement passed by a Dallas, Texas jury (via Polygon), Oculus now has to pay ZeniMax $500 million.

Oculus is paying out $200 million for breaking an NDA with ZeniMax, and $50 million for copyright infringement. Oculus and ‘inventor’ Palmer Luckey each have to pay $50 million for false designation. Finally, Brendan Iribe has to pay $150 million, which brings the total up to $500 million.

In light of the victory, ZeniMax has stated that it will look into getting a temporary injunction on the sale of Oculus products. “Technology is the foundation of our business and we consider the theft of our intellectual property to be a serious matter. We appreciate the jury’s finding against the defendants, and the award of half a billion dollars in damages for those serious violations.”

Meanwhile, Oculus released a statement, reasserting that its products were built on its own tech, expressing disappointment at the judgement.

“The heart of this case was about whether Oculus stole ZeniMax’s trade secrets, and the jury found decisively in our favor,” an Oculus spokesperson told Polygon. “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. “

As of right now, Oculus products can still be purchased in stores. Any injunction, if granted, would only apply to the US market.


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