ZeniMax sued Oculus in May 2014, alleging that trade secrets were stolen during development of a gaming headset by Oculus. That wasn't the end of this legal battle, however, and Bloomberg reported that U.S. District Judge Ed Kinkeade in Dallas heard the case on Wednesday. This is actually a better deal for Oculus since ZeniMax was originally seeking $500 million in damages.
Facebook Inc won a ruling that halved a jury's $500-million verdict against its Oculus unit for using computer code in its virtual reality headset that was taken from another company. Judge Kinkeade denied the motion, agreeing with Oculus that such a sales ban would cause undue hardship for the company, investors, and consumers. According to Oculus, out of over 42 billion lines of code used by the company, only seven lines were copied from ZeniMax. But Judge Kinkeade made a decision to throw out the $250 million for damages against Oculus co-founders, Brendan Iribe and Palmer Luckey. With Oculus, Facebook's co-founder, Mark Zuckerberg was betting big and early on virtual reality. The seller of the Oculus Rift is now being ordered to pay the publisher of the "Fallout" video game series $250 million.
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"We've said from day one the ZeniMax case is deeply flawed, and today the court agreed", Paul Grewal, Facebook vice president, and deputy general counsel said in a statement. Based on a strong evidentiary record, the jury in this case found that ZeniMax was seriously harmed by the defendants' theft of ZeniMax's breakthrough VR technology and its verdict reflected that harm. This case reflects ZeniMax's determination to protect vigorously any unlawful infringement of its valuable IP rights. This was a positive step toward a fair resolution, and we will be appealing the remaining claims.