Facebook's Oculus Ordered to Pay $500m in VR Lawsuit

Tim Maytom

Oculus.jpgZeniMax has been awarded $500m (£395m) in compensation by a Dallas, Texas jury after it was found that Oculus VR co-founder Palmer Luckey, and Oculus, had failed to comply with a non-disclosure agreement he signed. However, Oculus was not found guilty of stealing trade secrets, as ZeniMax had originally claimed.

As first reported by Polygon, Oculus will pay ZeniMax $200m for the violation of the non-disclosure agreement – with an additional $50m for copyright infringement and $50m for false designation. Luckey and former Oculus CEO Brendan Iribe will have to pay $50m and $150m, respectively, for false designation.

ZeniMax had originally been seeking a £2bn verdict with up to another $4bn in damages.

“The heart of this case was about whether Oculus stole ZeniMax's trade secrets, and the jury found decisively in our favour,” an Oculus spokesperson said in a statement. “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.”

Facebook is said to be considering its ‘options to appeal’, according to CNBC’s Julia Boorstin. The verdict comes as Facebook announced its impressive fourth quarter results.

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