ZeniMax Media officially sues Oculus Rift for "misappropriation" of trade secrets (updated)
ZeniMax Media and id Software officially sued Oculus VR, the makers of the Oculus Rift virtual reality headset, today for the misappropriation of trade secrets and technology as it relates to its VR technology. The lawsuit also alleges that the company and it's founder Palmer Lucky breached contracts between the two contracts and infringed on company trademarks and copyrights.
This move wasn't unexpected as ZeniMax has been rattling their legal sabres since John Carmack left id to join Oculus full time earlier this year. Oculus responded to similar claims by ZeniMax earlier this month so a lawsuit was the next logical step for ZeniMax. I've reached out to Oculus for a response but as of the writing of this I haven't gotten an official response.
There are a lot of interesting things at play here but the biggest one for me is if this would be happening if the company hadn't been bought for $2 billion by Facebook earlier this year. I'm hopeful that this will be settled quickly but I have a feeling this will be something that will be drug out in court for a bit. We'll keep you updated as we learn more about the situation.
Update (CBH) - We just received this official statement from Oculus Rift:
"“The lawsuit filed by ZeniMax has no merit whatsoever. As we have previously said, ZeniMax did not contribute to any Oculus technology. Oculus will defend these claims vigorously.”
ZENIMAX MEDIA INC. AND ID SOFTWARE LLC FILE SUIT AGAINST OCULUS VR, INC. AND ITS FOUNDER, PALMER LUCKEY
May 21, 2014 (Rockville, MD) -- ZeniMax Media Inc. and its subsidiary, id Software LLC, filed suit today against Oculus VR, Inc. and its founder, Palmer Luckey, for illegally misappropriating ZeniMax trade secrets relating to virtual reality technology, and infringing ZeniMax copyrights and trademarks. ZeniMax is also asserting claims for breach of contract, unjust enrichment, and unfair competition against the defendants. The suit was filed in federal court in the U.S. District Court for the Northern District of Texas.
The suit arises from the defendants’ unlawful exploitation of intellectual property, including trade secrets, copyrighted computer code, and technical know-how relating to virtual reality technology that was developed by ZeniMax after years of research and investment. ZeniMax provided this valuable intellectual property to defendants under a binding Non-Disclosure Agreement that specifies such intellectual property is owned exclusively by ZeniMax and cannot be used, disclosed, or transferred to third parties without ZeniMax’s approval. ZeniMax’s intellectual property has provided the fundamental technology driving the Oculus Rift since its inception. Nevertheless, the defendants refused all requests from ZeniMax for reasonable compensation and continue to use ZeniMax’s intellectual property without authorization.
All efforts by ZeniMax to resolve this matter amicably have been unsuccessful. Oculus has recently issued a public statement remarkably claiming that “ZeniMax has never contributed IP or technology to Oculus.” Meanwhile, Luckey has held himself out to the public as the visionary developer of virtual reality technology, when in fact the key technology Luckey used to establish Oculus was developed by ZeniMax.
“Intellectual property forms the foundation of our business,” said Robert Altman, Chairman & CEO of ZeniMax. “We cannot ignore the unlawful exploitation of intellectual property that we develop and own, nor will we allow misappropriation and infringement to go unaddressed.”
"ZeniMax and id Software take their intellectual property rights seriously," said P. Anthony Sammi, a Partner of Skadden, Arps, Slate, Meagher & Flom LLP which represents ZeniMax and id in this matter. "We now look to the federal courts and will pursue all appropriate measures available under the law to rectify defendants’ egregious conduct," he added.
