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Facebook Ordered to Pay $500M in Oculus Lawsuit

variety.com

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Re: Facebook Ordered to Pay $500M in Oculus Lawsuit

#3

Post by cptskippy »

The accusation that Palmer was incapable of creating the Rift without Carmack's help and that he had a barely functional prototype, if true, is pretty insulting to Carmack. Carmack is a smart guy and I every much doubt he'd have joined on at CTO if the prototype was as awful as ZeniMax says it was.

Re: Facebook Ordered to Pay $500M in Oculus Lawsuit

#4

Post by MitchellKnight »

> However, the jury also found Wednesday that Oculus didn’t violate any trade secrets. Instead, it ruled that Luckey, who was working as a contractor for Zenimax before starting the Kickstarter for the Oculus Rift headset, violated his non-disclosure agreement, according to a Polygon report.

I don't understand how this works. Why does Facebook have to pay $500M over an NDA violation between an individual and his previous company? It seems like ZeniMax should only have a case against Palmer Luckey.

Re: Facebook Ordered to Pay $500M in Oculus Lawsuit

#7

Post by dkonofalski »

cptskippy wrote: post #3

The accusation that Palmer was incapable of creating the Rift without Carmack's help and that he had a barely functional prototype, if true, is pretty insulting to Carmack. Carmack is a smart guy and I every much doubt he'd have joined on at CTO if the prototype was as awful as ZeniMax says it was.

I don't think it was the prototype itself that was barely functioning, it was the software side that wasn't great. I remember when Palmer first showed off the device, it seemed to track just fine. When they introduced actual content, though, it became disorienting really quickly.

I backed them on Kickstarter so I got to see the DevKit1, DK2, and the CV1. The difference between the early versions and the end versions really came down to the software that handled the tracking. Compensating for movement lag and predicting frames to ease the jerkiness are really what converted it from a prototype to a viable commercial product.

That being said, it makes me laugh a little to see that Valve and the HTC Vive managed to outpace Oculus. Oculus had so much momentum and marketing buzz and they really dropped the ball on that one. Who knows how much of that was due to the FB purchase, but it definitely is weird seeing them lose their huge advantage.

Re: Facebook Ordered to Pay $500M in Oculus Lawsuit

#8

Post by GauntletWizard »

MitchellKnight wrote: post #4

> However, the jury also found Wednesday that Oculus didn’t violate any trade secrets. Instead, it ruled that Luckey, who was working as a contractor for Zenimax before starting the Kickstarter for the Oculus Rift headset, violated his non-disclosure agreement, according to a Polygon report. I don't understand how this works. Why does Facebook have to pay $500M over an NDA violation between an individual and his prev…

Because Oculus (now part of Facebook) was built on the NDA breach. (It is the court's opinion that) Luckey misappropriated trade secrets, formed that misappropriation into Oculus, and then sold that to FB. IANAL, but I suspect it's a 'receipt of stolen goods' argument - FB should have known through it's due diligence that what they were buying was stolen property.
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