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Gaming Law

Oculus owes ZeniMax $500 million after founder Palmer Luckey breaks NDA (Updated)

UPDATE: Two things, as we’ve received clarification from a PR rep. First, the total Zenimax in the suit was actually $6 billion, with $4 billion towards punitive and $2 billion to actual damages.

Second, Oculus released this statement.

“The heart of this case was about whether Oculus stole ZeniMax’s trade secrets, and the jury found decisively in our favor. We’re obviously disappointed by a few other aspects of today’s verdict, but we are undeterred. Oculus products are built with Oculus technology. Our commitment to the long-term success of VR remains the same, and the entire team will continue the work they’ve done since day one – developing VR technology that will transform the way people interact and communicate. We look forward to filing our appeal and eventually putting this litigation behind us.”

Original Story: Over the last few weeks, a lawsuit has been unfolding between Oculus, the Facebook-owned company behind the Oculus Rift, and ZeniMax, the parent company of Bethesda. Yes, that Bethesda. That’s now finished, and the jury has ordered that Oculus pay ZeniMax $500 million.

The two companies have a long and unique history as it relates to the development of virtual reality. In 2014, ZeniMax wound up suing Oculus, alleging that the company had essentially pulled off a corporate heist and stolen trade secrets in order to design and produce the Oculus Rift.

In closing arguments, as detailed by Polygon, ZeniMax’s counsel argued that Oculus owed the company closer to $4 billion spread over compensation and damage. The jury ruled that Oculus had not misappropriated trade, instead ruling that Oculus CEO Palmer Luckey failed to comply with a signed non-disclosure agreement. The bill for breaking the NDA? Half a billion dollars.

Oculus is lucky to be owned by Facebook

I can’t pretend to know how Oculus would have weathered this storm if it were still an independent company. Thanks to being acquired by Facebook, though, it has a parent company that can likely handle the $500 million loss and the hefty legal fees. Facebook bought Oculus in a deal worth $2 billion. Interestingly, it only paid around $400 million in cash for the purchase, the rest came from Facebook stock.

We’ll see how this shakes out, though I can’t imagine Zuckerberg’s too happy right now.

Categories
Gaming Law

Lindsay Lohan’s lawsuit against Rockstar allowed to proceed

In a shocking turn of events for a video game lawsuit many dismissed as dead on arrival, a New York Supreme Court judge has allowed Lindsey Lohan’s lawsuit against Rockstar Games to go forward.

The history of the case has been well documented to this point. Lohan’s complaints against Rockstar stem from Grand Theft Auto V and the character Lacey Jonas, a troubled Hollywood starlet who is always on the run from paparazzi. Jonas’ fashion, personality, and lifestyle are all something Lohan claims to be stolen from her, and she is looking for compensation.

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Business Law

Microsoft and Google put an end to 5 years of patent disputes

Google and Microsoft have been fighting it out in court for as long as we can remember, but this week the two tech giants finally came to an agreement. The companies announced in a joint statement that they’re putting an end to five years of litigation and 20 different lawsuits.

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Business Law

Google could go to court over Alphabet name

Before Larry Page and Sergey Brin announced the existence of Alphabet, one would assume the two did their homework to make sure the name was actually available. Well, turns out it isn’t; in fact, not only has the domain already been scooped up, but the Alphabet trademark already belongs to another (and very unexpected) company. And, no, they don’t want to sell.

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Internet Law

Net neutrality scores a win in FCC vote

A proposal to protect net neutrality was approved on Thursday by the FCC in a 3-to-2 vote that could establish strict rules for the open Internet. The decision will reclassify Internet service providers under the same Title II restrictions covering phone lines, while also prohibiting paid fast lanes, throttling and more.

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Law

Apple Found Not Guilty in High-Profile iPod Trial

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Apple was back in court this month over claims that the company used DRM software to block music from iTunes competitors on certain iPod models. On Tuesday, the trial came to the close with a unanimous “not guilty” verdict from the jury.

Categories
Law Mobile

Unlocking Your Phone in the U.S. is About to Be Legal Again

Last year it became illegal to unlock your phone in the U.S. as part of the Digital Millennium Copyright Act. At the time we were pretty upset, and now over a year later Congress is finally correcting its mistake. All that’s left is for President Obama to sign the new bill into law, and that shouldn’t be much of an issue.

Categories
Law Mobile

Police Need Warrant to Search Your Phone, Supreme Court Rules

The Supreme Court on Wednesday officially ruled that phones in the United States are “generally protected from searches without warrant,” which means law enforcement should now need a warrant before they try to open your phone and use its contents as evidence against you.