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Zuckerberg dragged into middle of Oculus and ZeniMax suit

On Behalf of | Dec 17, 2015 | Business Litigation

Most Kansans have probably not heard about the lawsuit between Oculus, a manufacture of virtual reality glasses, and ZeniMax Media, a gaming company. The lawsuit, filed by ZeniMax in May 2014, alleges that Oculus used the company’s intellectual property in violation of a non-disclosure agreement.

Facebook purchased Oculus in March 2014 for $2 billion, two months prior to the filing of the lawsuit. The company had enjoyed significant success with its virtual reality glasses. In determining whether or not to purchase the company, Facebook’s CEO Mark Zuckerberg had reportedly conducted a business valuation and had allegedly tested the glasses personally. ZeniMax has argued that because he did so, he has unique information needed in its lawsuit.

At issue is some software and hardware developed by ZeniMax that was then allegedly used by Oculus to improve its virtual reality glasses. With this intellectual property, ZeniMax alleges that Oculus was able to achieve great commercial success. ZeniMax alleges that it was never paid for the use of its technology. It also claims that Oculus learned of it through a non-disclosure agreement when the two companies briefly collaborated on a project. Mr. Zuckerberg has been fighting to not have to testify, but a court ordered him to do so at a deposition. He argued that he wasn’t with either company when the technology at issue was being developed, as it occurred several years before Facebook acquired Oculus.

Business litigation often is the result of a breach of a contract, such as a non-disclosure agreement. A company that has been damaged in such a manner may want to have the assistance of a litigation attorney in seeking all available remedies.