This morning, word came down that ZeniMax has settled their lawsuit against Oculus and Facebook, but the terms of the settlement are undisclosed. ZeniMax’s originally took both companies to court, claiming they stole proprietary technology that was later used to develop the Oculus Rift VR headset. Originally, a jury sided with ZeniMax back in 2017 and awarded the company $500 million settlement, which was based on a breach of a non-disclosure agreement and misuse of copyrights and trademarks. The company sent out some of the details this morning in a short press release. We’re guessing part of the settlement involves ZeniMax receiving most of the original amount, along with royalties on future sales using their tech.
The case was tried in the Federal District Court in Dallas in January 2017, resulting in a jury verdict in favor of ZeniMax for $500,000,000, and other relief. Subsequently, the District Court reduced the damage award to $250,000,000, and the parties appealed to the U.S. Court of Appeals for the Fifth Circuit. The appeal was pending when the settlement was reached with Facebook. The terms of the settlement are confidential.
Robert Altman, ZeniMax’s Chairman and CEO, made the following statement regarding the resolution of the case: “We are pleased that a settlement has been reached and are fully satisfied by the outcome. While we dislike litigation, we will always vigorously defend against any infringement or misappropriation of our intellectual property by third parties.”