Oculus VR Rejects ZeniMax Claims in Acrimonious Litigation
Virtual-reality startup Oculus VR has responded to a lawsuit by Rockville, Maryland-based ZeniMax Media Inc., owner of Bethesda Games Studios.
In May, ZeniMax had sued Oculus, and its founder, Palmer Luckey, claiming that Oculus’s key product, the “Oculus Rift” head-mounted virtual reality display, was based on stolen technology.
In its strongly worded response, Oculus asserts, “There is not a line of ZeniMax code or any of its technology in any Oculus products.”
Filed in U.S. District Court for the Northern District of Texas, ZeniMax’s suit alleges misappropriation of intellectual property, including trade secrets, trademarks, copyrighted computer code, and technical know-how it had spent years developing. The legal battle has become a dramatic illustration of the importance of protecting proprietary technology in a highly competitive industry.
ZeniMax complained not only that Oculus hired software developer John Carmack, previously employed by ZeniMax, but also that Carmack had improperly shared intellectual property with Luckey and Oculus even while still employed by ZeniMax. The suit includes claims of “breach of contract, unjust enrichment, and unfair competition.”
Oculus denies these and other claims, including the allegation that Palmer Luckey violated a non-disclosure agreement ZeniMax said he had once signed. Oculus attributes the bitter lawsuit to the March announcement of Oculus’s sale to Facebook for $2 billion. Prior to that, says Oculus, ZeniMax had no interest in working further on virtual reality technology.
ZeniMax said it tried to resolve its dispute with Oculus amicably but was unable to. When the defendant refused what ZeniMax described as requests for “reasonable compensation,” ZeniMax sued. The company seems to be particularly annoyed with Oculus founder Luckey. Though Lucky has been hailed as a VR visionary, ZeniMax believes he stole many of his ideas from them.
Proprietary intellectual property and business methods are the lifeblood high technology companies, as well as companies in many other fields. As the ZeniMax case shows, at a time when employees are able to move from one job to another and take critical information with them, it is essential that corporations protect themselves with non-disclosure agreements, non-compete agreements, and other tools.
Whether you are the plaintiff or defendant in a business dispute, Longman & Van Grack’s legal team will guide you on the best course of action for an efficient resolution. Contact us at (301) 291-5027 for a consultation today.
