Zenimax’s Suit Against Oculus Over Misappropriation Of Trade Secrets Allowed To Continue

The first chapter of Zenimax’s suit against Oculus for misappropriation of proprietary technology has closed. The case was filed in May 2014, and the courts have this week denied Oculus’ attempt to have it dismissed.

Zenimax alleges that John Carmack and Oculus have benefitted from the misappropriation of virtual reality technology worked on at iD Software. The publisher says that computer code, trade secrets, and technical aptitude owned or developed at Zenimax have led to Oculus preparing to realize huge sums of money.

The court indicates that Zenimax has provided enough evidence to have its case heard. If the publisher is unable to succeed on its claim that Oculus misappropriated trade secrets, it will be able to seek damages for “unjust enrichment.”

Unjust enrichment refers to one party benefitting at the expense of another. No wrongdoing or intent is necessary, and Oculus would need to make restitution if the courts find in favor of Zenimax.

We’ve reached out to Oculus for comment, but the company has declined to provide a statement.

[Source: United States District Court for the Northern District of Texas]

Our Take
It’s important to note that while the courts have denied the dismissal, this case is far from over. Both sides have yet to present evidence and make their arguments at trial. Whether this ends up settled or litigated, it’s an enormous case that could be worth millions.