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Claims Against Oculus For Breach Of Contract Allowed To Proceed In Court

by Mike Futter on Jan 21, 2016 at 02:54 AM

A lawsuit filed against Oculus in May 2015 will be allowed to continue, a U.S. District Court has determined. Judge William Alsup has ruled that a claim made against the VR company by Total Recall Technologies will be allowed to continue.

Total Recall filed suit against Oculus for breach of contract, fraud, and “wrongful exploitation” of intellectual property. All but the breach claim has been dismissed.

The suit claims that Luckey was contracted by Total Recall to build a virtual reality head-mounted display (like the Rift). The company asserts that the Oculus Kickstarter, which touched off the contemporary VR movement, was operated while Luckey was under contract.

At the time Oculus did not have a comment on the matter. We’ve reached out to the company again for a statement and will update should we receive a response.

Oculus enters the market with the Rift in March. The headset is priced at $599 in the United States, with Rift-ready PC bundles to be sold for approximately $1,500. Oculus’ pricing sets a benchmark for HTC and Sony that will define the opening volley in the VR era.

[Source: Reuters]


Our Take
This is good news for Oculus, which seems to have dodged the heavier intellectual property claims. It seems unlikely that Total Recall will come away with a piece of the Facebook-owned enterprise even if it is victorious in its breach of contract claim.