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Facebook to pay $500M in Oculus lawsuit

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Facebook to pay $500M in Oculus lawsuit

A jury awarded $500 million to ZeniMax Media Inc. stating that Facebook Inc.'s Oculus VR, Inc. co-founder Palmer Luckey, and Oculus by extension, did not comply with a nondisclosure agreement Luckey signed.

While the jury did not find Oculus guilty of misappropriating trade secrets, it found the company guilty of copyrights infringement with no excuse for Oculus' failure to comply with the non-disclosure agreement.

The jury ordered the company to pay $200 million for breaking the non-disclosure agreement and $50 million for copyright infringement. Further, Luckey and Oculus have to pay $50 million each for false designation, with Oculus co-founder Brendan Iribe ordered to pay $150 million for the same.

ZeniMax in 2014 filed the lawsuit alleging that Oculus had infringed on ZeniMax's intellectual property on virtual reality technology and expertise by commercially exploiting ZeniMax's intellectual property without obtaining a license. The plaintiff claimed that Oculus' Rift virtual-reality headset would not have been a viable product without the technology provided by ZeniMax.

Oculus denied the claims alleging that ZeniMax was trying to take advantage of Facebook's bid to buy the virtual-reality headset maker. Mark Zuckerberg, CEO of Facebook, recently appeared before the jury at the Dallas federal court, denying allegations made by ZeniMax, stating that Oculus' VR technology was not fully formed when Facebook acquired Oculus. Zuckerberg added that he was not aware of ZeniMax's claim before the acquisition of Oculus.

Facebook completed its acquisition of Oculus in July 2014.