ZeniMax Awarded a Half Billion in Lawsuit Against Facebook

ZeniMax Awarded a Half Billion in Lawsuit Against Facebook

ZeniMax Awarded a Half Billion in Lawsuit Against Facebook

But in any regard, ZeniMax alleged that Facebook was fully aware that some of Oculus' technology was stolen from ZeniMax when John Carmack left the company to become the CTO for Oculus.

Almost three years after ZeniMax first filed suit against Oculus for "illegally misappropriating ZeniMax trade secrets relating to virtual reality technology", the case has finally drawn to a close-though likely not to ZeniMax's satisfaction. Facebook CEO Mark Zuckerberg testified in court he was not aware of the intellectual property claims between Oculus and ZeniMax.

As a result, the $500 million in damages is still much less than the $2 billion ZeniMax had been hoping for, with both companies now insisting they will appeal.

A jury in Dallas, Texas made the ruling made the compensation award after determining Oculus founder Palmer Luckey failed to comply with a signed non-disclosure agreement, Polygon reports.

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Hours after the court revealed the outcome of the case, Facebook posted its latest quarterly earnings.

The company said it had 1.86 billion monthly active users during 2016, an increase of 17% on the previous year. On mobile, the number of monthly and daily active people accessing Facebook were 1.74bn and 1.15bn.

Facebook's acquisition of Oculus gave it a head start against Microsoft Corp., Sony Corp., Alphabet Inc.'s Google and others competing for a piece of the virtual reality market that's forecast to exceed US$84 billion in sales in 2020. "This case, because Zenimax and the owners of Zenimax feel badly, embarrassed, humiliated, that they didn't do the deal, that they didn't invest in this VR technology when they could have, they want to rewrite history", Beth Wilkinson, a lawyer for Facebook, said.

ZeniMax, which is based in Rockville, Maryland and has designed video games such as Doom and Quake, said Carmack began communicating with Luckey in 2012, who at the time, was working on a virtual reality headset called Rift. Not surprisingly, the jury found ZeniMax code copyrights were infringed. The company said in filings that the technical know-how of Carmack, who allegedly copied thousands of documents from his ZeniMax computer, and other ZeniMax employees, provided hardware components and software that were key to Rift's development.

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