Facebook Will Respond Soon To Proposed ZeniMax Judgment

by Ian Hamilton • February 23rd, 2017

ZeniMax filed for a proposed judgment and final injunction in its $500 million case against Oculus.

The company proposed Oculus be “permanently enjoined, on a worldwide basis, from using…any of the Copyrighted Materials, including but not limited to (i) system software for Oculus PC (including the Oculus PC SDK);  (ii) system software for Oculus Mobile (including the Oculus Mobile  SDK);  (iii) Oculus integration with the Epic Games Unreal Engine; and (iv) Oculus integration with the Unity Technologies Unity Game Engine.”

ZeniMax declined to comment. A Reuters report suggested “the injunction could limit the number of games available for sale for Oculus’ Rift VR headset.” Facebook provided the following statement:

ZeniMax’s motion does not change the fact that the verdict was legally flawed and factually unwarranted. We look forward to filing our own motion to set aside the jury’s verdict and, if necessary, filing an appeal that will allow us to put this litigation behind us.

I’ve uploaded two of the documents filed by ZeniMax lawyers outlining the legal reasoning. Those documents are uploaded here and here. Referring to the $500 million award, ZeniMax argued:

“The jury’s damage award here, however substantial, is an insufficient incentive for Defendants to cease infringing. Just minutes after the jury revealed its verdict, Facebook’s COO, Sheryl Sandberg, publicly stated that the jury’s verdict of a half billion dollars was “not material to [Facebook’s] financials.”

Earlier this month a Texas jury found Oculus did not misappropriate trade secrets from ZeniMax, which was the previous employer of Oculus Chief Technology Officer John Carmack. The jury, however, decided Oculus co-founder Palmer Luckey failed to comply with a non-disclosure agreement he signed and Oculus was liable as a result. Oculus, and its co-founders Luckey and Brendan Iribe, were found to owe ZeniMax $500 million as a result of copyright infringement and “false designation.”

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