Thursday, February 2, 2017

Facebook loses $500m Oculus virtual reality case

The jury found the Oculus, which Facebook buying in 2014, used computer code belongs to video game developer Zenimax to start your own VR headset.


Oculus says it is "disappointed" and would appeal the decision.
The case threatens to overshadow the latest Facebook results, which showed it enjoying a strong end to the year.

Facebook's net profit more than doubled to $3.6bn in the fourth quarter.

Social network that aided by the 53% growth in ad revenue, and said it was on track to hit two billion users in the first half in the year 2017.

"Trade Secrets"

Shortly before the results came out, the Court awarded compensation of Facebook, Zenimax Oculus and Oculus of the leaders after a three-week trial.

ZeniMax argues that early innovation in virtual reality copied illegally, as the Oculus built its own headset, gap.

"We are pleased that the jury in the case of us in the US District Court in Dallas has allocated $500 m for unlawful infringement Defendants Zenimax by copyright and trademarks," said Executive Director Robert Altman Zenimax.

Co-founder of Oculus Luckey, Palmer, was also found to have violated a confidentiality agreement with the company.

But the judges ruled that none of the defendants are business secrets Zenimaxs.


The analysis of the Founder of Oculus,

By Dave Lee, the BBC'S North American technology journalist Some people will have been given a Mark Zuckerberg as many headaches as Palmer Luckey.

24 year-old founded Oculus VR, and when Facebook came to buy the company for $2bn, he was rewarded with a very expensive. Then go a bit downhill.

First, it was revealed that he used some of that money to finance pro-Donald Trump trolling campaign, leading Facebook to remove it from public view. He did not even see, the company's own Developer Conference last year.

And now that the jury has stated that he violated a confidentiality agreement, which would mean $500 million in damage (except Facebook WINS on appeal).

Mark Zuckerberg does not show much emotion but you wonder what she will be like behind closed doors on this one.

As it stands, Palmer Luckey still an employee of Facebook, but what he does have is anybody's guess the company will not even tell me the title of the work.

An Oculus spokesman said: "in the midst of this case is about whether Oculus ZeniMax's stealing trade secrets and a jury found firmly in our favour."

The company does not comment on damage of $500 m.

Facebook ceo Mark Zuckerberg testified last month, "the idea that the Oculus product based on the technology of others just wrong".


ZeniMax, as the owner of id Software, a video game developer, is suing Facebook for $2bn.

Along with claims against Palmer suspected that John Carmack's Luckey, co-founder of id, take the intellectual Zenimax when he left the company to join Oculus as acting head of technology is full of him.

"Heavenly older"

Virtual reality is only a fraction of the company's current Facebook, but is seen as crucial to the company's strategy in the next 10 years.

Fourth-quarter earnings mostly Facebook jumped 54% $6bn -27 comes from advertising on social networks.

"Facebook had another stellar quarter, giving the record revenue, growth and profitability, as a vehicle for advertising shifts online," said Martin Garner, senior analyst at CCS Insight.

"But he expects growth to slow down in ad 2017, so he expects for the year less favorable."

Fake news

Another challenge to Facebook face this year include the approach to privacy changes in Europe, a definite business landscape in the United States and challenges in China, said Mr Garner.

Social networking has also been criticised after some users complained that the fake news on the platforms have influenced United States presidential election.

In a call with analysts on Wednesday remove Facebook contacts, it will solve the problem by using artificial intelligence to another.

They also said many of the new users of Facebook in India, where a telecommunications operator has been offering free data packages to the Facebook traffic.

For the whole year grew cleaner Facebook 177% to $2bn. 10.
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