Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Nedbank hires MTN's former tech chief as group CIO - Nikos Angelopoulos

      Nedbank hires MTN’s former tech chief as group CIO

      31 July 2026
      Eskom's diesel bill falls 86% as breakdowns hit eight-year low

      Eskom’s diesel bill falls 86% as breakdowns hit eight-year low

      31 July 2026
      Ramaphosa signs off on taking the grid away from Eskom

      Ramaphosa signs off on taking the grid away from Eskom

      31 July 2026
      Microsoft just had the biggest day in stock market history

      Microsoft just had the biggest day in stock market history

      31 July 2026
      MTN Nigeria's growth engine stalled in second quarter - Karl Toriola

      MTN Nigeria’s growth engine stalled in second quarter

      31 July 2026
    • World
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
      Jony Ive's first OpenAI device: an AI smart speaker - Jony Ive and Sam Altman

      Jony Ive’s first OpenAI device: an AI smart speaker

      15 July 2026
      Stripe, Advent in talks to buy PayPal for $53-billion

      Stripe, Advent in talks to buy PayPal for $53-billion

      15 July 2026
      Memory crisis sends smartphone market into steep decline

      Memory crisis sends smartphone market into steep decline

      13 July 2026
    • In-depth
      The plan to stop AI from breaking the world - Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

      TCS+ | Why South African workers must become supervisors of digital labour

      31 July 2026
      TCS | Rapid deployment rules can't work without municipalities: ACT - Nomvuyiso Batyi

      TCS | Icasa’s rules skip the real bottleneck: ACT

      30 July 2026
      TCS+ | iStore Business on why Apple makes sense for SMEs - Sudesh Pillay and Tamia Nontsikelelo

      TCS+ | iStore Business on why Apple makes sense for SMEs

      30 July 2026
      TCS+ | A smarter approach to cloud for South African businesses - Joel Chacko and Jonathan Oaker

      TCS+ | A smarter approach to cloud for South African businesses

      28 July 2026
      TCS | How Optasia lends billions to people banks can't see - Salvador Anglada

      TCS | How Optasia lends billions to people banks can’t see

      23 July 2026
    • Opinion
      The author, Jannie van Zyl

      Selling vapour is corporate suicide in slow motion

      16 July 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      How Amazon outmanoeuvred Starlink in South Africa

      15 July 2026
      The Popia problem with agentic AI - Herman Haasbroek

      The Popia problem with agentic AI

      14 July 2026
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Top » Facebook loses $500m VR headset battle

    Facebook loses $500m VR headset battle

    By Agency Staff2 February 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    A user wears the Oculus Rift VR headset

    The virtual reality headset maker that Facebook bought in 2014 for US$2bn used stolen computer code, a jury said in awarding $500m to ZeniMax Media.

    The case was over the Oculus Rift, the device that has put the social media giant at the forefront of the VR boom.

    Wednesday’s verdict in a Texas federal court is a rebuke to Facebook CEO Mark Zuckerberg, who isn’t a defendant but who told jurors in his first-ever courtroom testimony that it was important for him to be there because the claims by ZeniMax were “false”. An Oculus spokeswoman said the company will appeal.

    ZeniMax claimed it was responsible for key breakthroughs in the development of software and hardware for the headset, only to be betrayed when one of its star employees joined with two other entrepreneurs and purloined ZeniMax’s intellectual property for their own startup, Oculus VR.

    Facebook’s acquisition of Oculus gave it a head start against Microsoft, Sony, Google and others competing for a piece of the VR market that’s forecast to exceed $84bn in sales in 2020. Facebook began shipping the ski-goggle-like Rift for $599 in March.

    The case centred on the defection of videogame programmer John Carmack from ZeniMax, where he had designed blockbuster games Doom and Quake, to Oculus, where he was named chief technology officer in 2013. He acknowledged in testimony that he took with him e-mail records including computer code related to VR.

    While the jury rejected trade-secret theft claims, it ordered Oculus to pay $200m for violating a nondisclosure agreement, $50m for copyright infringement and $50m for improper use of ZeniMax’s trademarks.

    Jurors also hit Oculus’s co-founders, Brendan Iribe and Palmer Luckey, with $150m and $50m in damages, respectively, for the trademark misuse. The jury found that Carmack took property belonging to ZeniMax but didn’t order him to pay damages.

    “The heart of this case was about whether Oculus stole ZeniMax’s trade secrets, and the jury found decisively in our favour,” Oculus spokeswoman Tera Randall said in a statement. “We’re obviously disappointed by a few other aspects of today’s verdict, but we are undeterred. Oculus products are built with Oculus technology.”

    ZeniMax said in a statement that while it regrets having to go to litigate to vindicate its rights, “it was necessary to take a stand against companies that engage in illegal activity in their desire to get control of new, valuable technology”.

    Mark Zuckerberg of Facebook – image Ludovic Toinel

    ‘Heist’

    ZeniMax’s lawyer, Tony Sammi, argued at trial that Oculus committed a “heist”, covered it up by destroying evidence and made off with “a lot of money” when it was bought out by Facebook. He told the jury Oculus went from “zero to hero” using Carmack’s innovations at ZeniMax to improve on the crude prototype for the Rift designed by Oculus co-founder Palmer Luckey.

    “If they could make it, why’d they take it?” Sammi asked the nine-member jury in his closing argument.

    Zuckerberg testified for five hours during the three-week trial, denying ZeniMax’s allegations and saying it’s common for companies to “come out of the woodwork” and make such claims following an acquisition.

    Facebook’s lawyer, Beth Wilkinson, underscored that point in her closing argument, saying ZeniMax ceased all work on VR in early 2013 and didn’t accuse Oculus of wrongdoing until Facebook announced the takeover in March 2014.

    “They’re jealous. They’re angry,” Wilkinson told jurors. “They’re embarrassed because they had the opportunity to get in on this.”

    Zuckerberg had a vision and followed through on it, she said. He “saw what these guys could do in the future and invested”.

    ZeniMax had sought $2bn from Facebook and Oculus to compensate for losses and unspecified punitive damages.  — (c) 2017 Bloomberg LP

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Facebook John Carmack Mark Zuckerberg Oculus Oculus Rift ZeniMax
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleBanks bashed in battle over Guptas
    Next Article And now for the electronic rand?

    Related Posts

    Meta cash flow collapses as AI bill hits $145-billion - Mark Zuckerberg

    Meta cash flow collapses as AI bill hits $145-billion

    30 July 2026
    WhatsApp eyes its next act: a global superapp

    WhatsApp eyes its next act: a global superapp

    25 June 2026
    Vodacom eases dividend policy to fund growth push - Shameel Joosub

    The millions Vodacom spends protecting its CEO

    14 June 2026
    Company News
    Domains.co.za launches self-hosted n8n VPS hosting

    Domains.co.za launches self-hosted n8n VPS hosting

    31 July 2026
    Smarter.tech '26 shows why smarter technology begins with context - Obsidian Systems

    Context is the missing piece in enterprise AI: Obsidian

    31 July 2026
    Huawei launches 12 intelligent transport solutions in South Africa - Sam Tang

    Huawei launches 12 intelligent transport solutions in South Africa

    30 July 2026
    Opinion
    The author, Jannie van Zyl

    Selling vapour is corporate suicide in slow motion

    16 July 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    How Amazon outmanoeuvred Starlink in South Africa

    15 July 2026
    The Popia problem with agentic AI - Herman Haasbroek

    The Popia problem with agentic AI

    14 July 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Nedbank hires MTN's former tech chief as group CIO - Nikos Angelopoulos

    Nedbank hires MTN’s former tech chief as group CIO

    31 July 2026
    Eskom's diesel bill falls 86% as breakdowns hit eight-year low

    Eskom’s diesel bill falls 86% as breakdowns hit eight-year low

    31 July 2026
    Ramaphosa signs off on taking the grid away from Eskom

    Ramaphosa signs off on taking the grid away from Eskom

    31 July 2026
    TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

    TCS+ | Why South African workers must become supervisors of digital labour

    31 July 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}