ZeniMax Wanted 15 Percent Of Oculus

ZeniMax Wanted 15 Percent Of Oculus

Following Mark Zuckerberg’s appearance earlier this week, Oculus founders Palmer Luckey and Brendan Iribe answered questions in the company’s ongoing legal battle with ZeniMax Media over the alleged theft of VR technology.

Luckey got into the nitty-gritty details about the origins of the Oculus Rift and more on Wednesday.

Luckey faced questions from both prosecution and defense. The 24-year-old went in-depth on his account of the origins of the Rift, building early prototypes in 2012, and his collaboration with John Carmack, who was then working at ZeniMax subsidary id Software. Alongside his answers, Luckey often expressed concern with the amount of context provided by the prosecution lawyer, noting on several occasions that he was “just trying to be clear.”

An NDA signed by Luckey concerning the use of ZeniMax’s own tech was brought up. As the lawyer read out segments of the document, Luckey pointed to parts not mentioned. “I can’t answer your question accurately when you leave out seven or eight words,” he said of emails he had sent during this time, as reported by Gizmodo.

Luckey also said that, as far as he could remember, he told Oculus co-founder about the NDA, stating that any contradictions between what he had just said and what he stated at a deposition in January 2016 were due to the amount of time that had passed.

“I could be incorrect because it’s been a year, and this has been a long, long, process,” he said.

Following this, a 2012 email chain between Luckey and Iribe was called into question. In discussions regarding Carmack’s contributions to the startup, ZeniMax wanted 15 percent of Oculus while the startup’s management only thought 2 percent was appropriate. Luckey said the demand was “out of the blue”.

The defense sought to protect Luckey’s status as the creator of the Rift and a capable engineer, which ZeniMax’s 2016 complaint called into question. After explaining his reasoning for being home schooled (he couldn’t concentrate in the classroom), Luckey said he started “seriously working” on VR when he was “15 or 16”, and learned the history of the tech through “academic literature”, finding out “what had worked” and “what had not”.

To back up those claims, Luckey gave a detailed run down of the first prototypes of the Rift, which he started making after purchasing other headsets.

He detailed four prototypes he made, the last of which he showed at a USC Lab in January 2012, where he worked as a technician. Also referenced was his work with Nonny de la Peña, a journalist making her own VR tech to tell stories. Luckey joined her for the 2012 Sundance Film Festival, where her piece, Hunger in Los Angeles appeared on a rudimentary headset allowing for six degrees of freedom movement. It was not the Rift, though Luckey said the piece could have run on his headset “to a certain degree.”

Questioning then turned back to Luckey’s early relationship with Carmack. He had come into contact with Carmack via the Meant To Be Seen 3D forums.

“He was the highest profile person interested in what I was doing,” Luckey said of the decision to send a prototype to the developer, “and I was flattered.”

On April 4th 2012, Carmack would post his findings from using the kit on the same forums, where he stated he would be “giving several demos in the next month”. Luckey stated he then made an SDK to address concerns listed in that post.

At E3 2012 a few months later, Luckey said some media inaccurately attributed credit for the prototype to Carmack and not himself. An email from Carmack shortly before the show expressed concern that Luckey would be “short-changed” with him demoing the device. A month later, Luckey hosted a VR panel at QuakeCon along with Carmack and Abrash, where Doom 3 was displayed on the prototype Rift.

Despite Carmack demoing Doom 3 on the kit, Luckey claimed he had never been given access to its source code. As for later uses of Doom 3, Luckey said he obtained footage of the game from “public sources”. He also said he had not left executable files or a headset with Valve after a meeting.

Following discussion about the nature of Oculus’ Kickstarter, an email from Luckey was produced containing the phrase “It is better to beg for forgiveness than ask for permission.”

“Is that how Oculus runs its business?” the lawyer asked.

“No, generally speaking,” Luckey replied.

Brendan Iribe who, until recently was Oculus’ CEO, started answering questions next. He said he had been at E3 in 2012, though not with Oculus (he worked for game streaming company Gaikai at the time), and he didn’t see the Rift demo.

Questioning was largely concerned about his relationship with Luckey, which began at a meeting for dinner at a steak house in Los Angeles. Iribe gave Luckey less than $5,000 as part of an effort to convince him to do business with him and start the company. He said that while he wouldn’t call himself an expert in VR, Luckey was.

Luckey’s NDA with ZeniMax was then called into question, which Iribe said had been mentioned either in late 2012 or early 2013, and had then been forgotten about again. Iribe wasn’t sure if it was mentioned once more around the time of the Facebook acquisition in 2014, later adding that someone might have “remembered the NDA during due diligence.”

Questioning continued to suggest code written by Carmack could have been used in the Oculus SDK, with Iribe countering that emails noted ZeniMax might not co-operate, and that Carmack’s advice was not necessarily the advice they always agreed with.

“This is valuable technical advice given under an NDA so you could write your SDK,” the lawyer said. Iribe replied that he sees no problem in taking such advice.

Wednesday’s time in court wrapped up with additional questions surrounding Carmack’s involvement with the Oculus team as the SDK was developed. The trial continues today.

Editor’s Note: Writer Garrett Glass is in a Dallas courthouse this week following what’s going on for UploadVR, though the use of electronic devices is restricted and live-tweeting not allowed. Stay tuned for more updates as the case continues.

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Zuckerberg Reveals Actual Cost of Oculus Acquisition, Indicates $3 Billion Investment Will be Needed Over Next Decade

The current Oculus vs Zenimax trial has been heating up over the past week with both sides giving evidence. Yesterday however saw Facebook CEO Mark Zuckerberg appear in court, bringing to light more details about the company’s acquisition of Oculus in 2014, and what needs to be done to support virtual reality (VR) over the next few years. 

During his time on the stand Zuckerberg said that Brendan Iribe, then CEO at Oculus – last month he stepped down to head a new internal group focused on mobile – asked for $4 billion USD not $2 billion, reports The New York Times. As announced they settled on the lower figure, but it also turns out Facebook agreed to a further $700 million in compensation to retain key staff whilst offering a further $300 million for hitting specific milestones.

Mark Zuckerberg, Facebook CEO

During questioning the CEO discussed VR and its future, stating: “I don’t think that good virtual reality is fully there yet. It’s going to take five or 10 more years of development before we get to where we all want to go.”

“These things end up being more complex than you think up front. If anything, we may have to invest even more money to get to the goals we had than we had thought up front,” he added.

He then went on to indicate that Facebook would likely have invest $3 billion or more over the next ten years to achieve what it wanted to with VR, seeing it become a viable technology for millions of consumers.

While the case is likely to continue for sometime, in terms or the core debate around whether Oculus used Zenimax technology Zuckerberg was unwavering: “Oculus products are built on Oculus technology.”

As VRFocus learns more about the ongoing trial we’ll let you know.

The ZeniMax Media v. Oculus VR Trial Begins Today in Dallas

The ZeniMax Media v. Oculus VR Trial Begins Today in Dallas

ZeniMax Media v. Oculus VR is one of the first major legal disputes to happen in our young new industry. Following the massive Consumer Electronics Shows (CES) in Las Vegas, NV, the spotlight now turns to the Lone Star State as the court trial is set to start today, Monday, January 9th 2017, in Dallas, TX, according to Bloomberg.

In our previous report of the lawsuit, we explained that ZeniMax alleges the Rift was created with stolen technology sourced from ZeniMax employees. You might remember that, quite famously, John Carmack joined the Oculus team as CTO in 2013. Carmack is the co-founder of id Software, a company acquired by ZeniMax Media in 2009. His relationship with the VR company (namely Palmer Luckey) and the creation of the Oculus Rift is at the heart of the allegations.

Without help from ZeniMax employees, the company states that “there would not have been a viable Rift product.”

The actual lawsuit itself was first filed by ZeniMax in 2014, shortly after Facebook acquired Oculus VR for $2 billion. ZeniMax claims that Carmack was still a ZeniMax Media employee while he was closely involved with the creation of the VR company’s flagship headset, the Oculus Rift.

In a previous statement, an Oculus representative explained that “this complaint filed by ZeniMax is one-sided and conveys only ZeniMax’s interpretation of the story. We continue to believe this case has no merit, and we will address all of ZeniMax’s allegations in court.”

The Rift released last year in March at a price point of $599, with the $199 Touch controllers releasing last month in December. In the lawsuit, ZeniMax is seeking $2 billion in damages, which just so happens to be roughly the same price Facebook paid for the VR startup almost 3 years ago.

ZeniMax’s lawyer is Tony Sammi and the lead attorney for Oculus and Facebook is Beth Wilkinson. Live witnesses, including Facebook CEO and co-founder Mark Zuckerberg are expected to be called in the trial, according to Sammi.

The trial is expected to last approximately three weeks and is officially called ZeniMax Media Inc. v. Oculus VR Inc., 3:14-cv-01849, U.S. District Court, Northern District of Texas (Dallas).

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VR vs. Nostradamus – Part 1

Welcome to the first VR vs of the year, my weekly column where I take a look at what’s going on in the world of virtual reality (VR) and augmented reality (AR) and give my personal take on things as VRFocus‘ ‘third man’.

After last week’s look at Palmer Luckey’s future, which if you believe the Discord comments certainly had Oculus’ attention (ooh-er) it’s time to look to what lies before us in 2017. Because, as you all know, I happen to be a well versed techno-wizard. Able to turn people into fish and squirrels and birds and so forth. A head-mounted soothsayer-displayer with the power to see into the future. CENTURIES INTO THE FUTURE.

Also known as ‘bloke who can take a guess where things are going to head based on how last year went’.

So, in the spirit of everyone else’s ‘what I want to see in 2017’ articles I’m going to get all Nostradamus myself and give my own guesses as to what might well occur in 2017.

Scrying via my crystal ball I see…
Zenimax Becomes VR’s Bad Guy

This one is pretty much nailed on. Now we’re in 2017 the legal throwdown between Oculus and Zenimax Media surely grows closer by the day. If you’re unaware of the story so far Zenimax filed suit agaist Oculus suggesting that not only did Oculus VR unlawfully obtain technology and research from Zenimax (through John Carmack), but also that a story was fabricated to make Palmer Luckey, appear to be the creator. Instead, Zenimax allege that Luckey recognised the rising popularity of VR and obtained Zenimax’s technologies for his own use.

The whole scenario has been bubbling away now since 2014 and Zenimax have been using some very strong language during the process. Their filing amendment’s initial statement outright accusing Carmack of theft. Oculus and Facebook insist the whole shebang is entirely without merit.

The process is overdue to move on and Zenimax have been pretty clear they consider all Oculus’ work by extension their own. So you now have an outsider, as it were, trying to ‘cash in’ (as Facebook put it) on VR and they don’t particularly care how much of a mess they make. Even if a judge finds in favour of Facebook/Oculus, there’s going to be a lot of damage done to VR’s reputation as a whole and no one wants that. Don’t be surprised if Zenimax file for an injunction to stop worldwide sales of the Oculus Rift. I wouldn’t even be surprised if they also took aim at Samsung and other VR providers.

Whatever your stance on Oculus, Zenimax will be the name you not-so-silently curse by the end of the year. Heck, they might end up generating a lot of sympathy for Oculus from corners of the VR fandom that have previously been very much against them.

ZeniMax Media

Via crop circle analysis, aliens tell me that…
Several Trillion Market Research Agencies Will Say VR’s Market Growth Has Slowed/Value Has Reduced

It’s one of my pet peeves (see: VR vs. Simply Irr-statistical) but as you know there can never be a week that goes by without some marketing organisation declaring via the aid of their statistics how much the VR or AR market is changing. (By the way, it’s growing you know…) Some sub-facet will expand by 20 billion over the next four years. 40 billion. 60 billion. Will double in value. Triple. Quadruple. Will achieve sentience and destroy us all.  One thing I do predict is, following a 2016 full of bombast, that when we next get around to some of these organisation they will dial some of this back in a similar fashion.

This will be for a number of reasons for that of course; the biggest being that more data from 2016 will come in leading to a more rounded idea of where VR as an industry is heading. Yes, headsets haven’t sold as well as people would have wanted, but none of the platform holders are particularly worried about this. Still, expect some intriguing language from these firms who oh so cleverly predicted more VR sales in 2016 than 2015 – you know, that 2016 where all the PC and console systems actually came out at retail. They’ll adjust it down. People will cluck their tongues, stroke their beards and write stories where they mutter in serious tones about “Is this the end of VR?”

The answer to which will be “no”. Much like how the answer to every other article about “Is this the end of VR?” over the last twelve months has been “no”.

Through the reading of your palm I discover you really need to wash your hands… and also see…
The Debut Of Halo-lens

Minecraft this. Minecraft that. Minecraft bloody everything. It’s like Minecraft is seen as one of the only ways that something new in gaming can be explained. There’s nothing expressly wrong with that but for a franchise Microsoft is already dangerously close to over-milking we can afford a little break from it. It was the poster-child for cross play in 2016 and it still features on pretty much all the marketing material related to Microsoft’s Hololens. Microsoft showed off some very impressive technology during the latter part of last year which focused more on the home and the office (as opposed to Office) but it’s time they put a focus on the gaming again, and what better way than the use of Microsoft’s other golden goose.

It’s more than just a pun. Whilst they’ve dipped their toe in to the Halo universe previously with Warzone, (anyone remember that?) A first person Halo experience would be something fans would salivate over and be something instantly recognisable to gamers everywhere. The idea that you can “Become A Legend” would market well, and have press pounding at Microsoft’s door. Including us. It would also make sense as a stopgap near the end of the year following the release of Halo Wars 2 this February and the then wait until Halo 6: The Advertising Is Accurate This Time, Honest.

Halo_Header2

 

Through diligent observations of the heavens I note…
A Big Name Leaves Oculus – And Jumps Ship

Considering last week’s column you may assume I mean Palmer Luckey at this point and it’s entirely possible. Whilst I went into how he is being seen I didn’t really get into how he himself might be feeling, which is an entirely different kettle of fish. Depending on what occurs with this new role at Oculus, Luckey might well consider it a good time to cash out, especially if he gets an interesting enough offer. Although saying that he’d likely want to remain so as to be protected by the Oculus and Facebook legal umbrella during the Zenimax lawsuit – and others. That doesn’t rule out the possibility of someone else, another ‘known entity’ leaving Oculus, however.  There’s going to be an increased drive by companies to acquire talent within the industry, especially with new players on the horizon in Asia, etc. Don’t be surprised if there’s some inter-company executive headhunting that occurs; and don’t be surprised if it is a real surprise as to who.

And speaking of relations between companies…

Via the cutting open of a chicken, the entrails clearly predict…
Patent Wars: The Family Atmosphere Is Over

Whilst the various hardware fandoms really started to polarise in 2016, the situation between the actual businesses involved has been very jovial. Particularly on Twitter.

Each has congratulated the other on hardware launches and sales successes. Each side showcased their execs playing their rivals hardware – and even confirming when they’d received their purchase of it. There’s been open discussion over Twitter between representatives about their work and answering questions from the other side who are genuinely curious how a problem was solved. It’s all been very respectful.

Everyone has been in the same battle, fighting the same fight for the greater glory of VR… But it’s really only a matter of time before Sony, Oculus, HTC, Samsung, Google or even Razer step on one another’s toes.  The battleground? Patents. Of course it is going to be patents. Much as Zenimax are doing someone will decide one of the other companies is using a method or technology which they own and will sue. And the friendly relations between companies will get positively frosty.

Personally my money is on a Google-Samsung showdown over something relatively trivial which ends up dragging Oculus into it.

More next week on VRFocus as I turn my fantastic cosmic powers on new hardware, new games and reveal which VR manufacturer I think is going to be bought out.