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ZeniMax Agrees to Settle Facebook VR Lawsuit

December 12, 2018 / Todd Spangler

Game company ZeniMax Media said it is has agreed to settle litigation against Facebook, Oculus and individual executives alleging misappropriation of its virtual-reality technology.ZeniMax sued Facebook in 2014 after Id Software co-founder John Carmack joined Oculus as chief technology officer. In the suit, which sought as much as $4 billion in damages, alleged Carmack and Oculus founder Palmer Luckey stole trade secrets and used them to create the Oculus Rift headset.A federal jury in early 2017 returned a verdict in favor of ZeniMax, awarding $500 million in damages for copyright infringement and breach of contract but finding that Oculus did not steal trade secrets. In June 2018, a federal district court judge cut the damage award to $250 million, tossing out the damages against Luckey and ex-Oculus CEO Brendan Iribe as well as denying ZeniMax’s motion to ban sales of Oculus headsets. The parties appealed to the U.S. Court of Appeals for the 5th Circuit; the appeal was pending...