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Facebook ordered to pay $500m in Oculus virtual reality court case

Published: 05/02/2017 by Comments


Facebook is about to take a massive cut in its 2017 profit margin! After a court in the United States found them guilty of illegally using a company’s virtual reality technology.

In 2014, Facebook purchased a company called Oculus. During the launch of its VR headset, it was found that they breached the contract held with Zenimax, a video game developer.

Oculus are planning to appeal against the $500m decision. Facebook had a $3.6 bn profit in 2016; it appears that a huge portion of that may go towards this compensation.

The trial went on for three weeks, prior to the announcement of the results, the courts also awarded Zenimax damages from Oculus executives, Oculus and Facebook.

Zenimax claimed that Oculus copied their virtual reality ideas while building their own headset.

Robert Altman, chief executive for Zenimax stated that the company are extremely pleased with the results.

Palmer Luckey, the co-founder for Oculus was also found guilty of breaking a non disclosure agreement with the company.

There are not many people who have given Mark Zuckerberg the kind of troubles given by Palmer Luckey. After founding the company, Facebook purchased it for $2bn; things went drastically wrong after this.

Shortly afterwards it was revealed that a portion of the money from the sales was used to fund a trolling campaign for Donald Trump. This resulted in Facebook banning him from attending any public events, as the association would not be good for their reputation.

Unless Facebook wins their appeal, they will be paying out $500m! Palmer Luckey is still employed by Facebook; however, he doesn’t have a job title!

When Zuckerberg testified during the trial, he stated: “It is simply not true that Oculus used someone else’s technology ideas to for their products.”

Zenimaz did not win the full amount; they were actually attempting to sue Facebook for $2bn!



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