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ZeniMax, Facebook settle VR lawsuit

Mediation program results in undisclosed agreement between companies, dismissal of appeals

ZeniMax and Facebook have finally buried the hatchet when it comes to their longstanding legal feud over Oculus VR technology. A federal judge yesterday granted the pair's joint motion to dismiss their appeals in the case after they reached a settlement through the Fifth Circuit Court of Appeals mediation program.

Terms of the settlement were not disclosed.

"We are pleased that a settlement has been reached and are fully satisfied by the outcome," ZeniMax chairman and CEO Robert Altman said. "While we dislike litigation, we will always vigorously defend against any infringement or misappropriation of our intellectual property by third parties."

A Facebook representative said, "We're pleased to put this behind us and continue building the future of VR."

The dispute between the companies stems from assistance former ZeniMax employee and id Software co-founder John Carmack provided Oculus founder Palmer Luckey back in 2012 to help produce an early prototype of the Rift headset. Carmack left id to join Oculus in 2013, and ZeniMax filed suit the next year. A judge found some of ZeniMax's claims held merit, and awarded the company a $500 million judgment, which was later halved on appeal. That led to further appeals, which have now been dropped.

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