Facebook's Oculus Rift acquisition has left it with a $500 million bill for unlawfully copied software.
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(CCM) — Facebook has been left reeling after a court ordered it and others to pay $500 million for unlawfully using another company's virtual reality technology in its Oculus Rift VR headset, according to a BBC report. Facebook bought Oculus VR, which developed the headset, for $2 billion in 2014. A U.S. court found that Oculus had breached a contract with video game developer Zenimax, which claimed that its early innovations in virtual reality were unlawfully copied when Oculus built its Rift, according to the report. It awarded Zenimax damages from Facebook, Oculus, and Oculus executives. The court also found that Palmer Luckey, the co-founder of Oculus and now a Facebook employee, broke a non-disclosure agreement with Zenimax. Oculus has vowed to appeal against the ruling.
The announcement follows the publication of Facebook's financial results which show that the company made a net profit of $3.6 billion in the last quarter of 2016. Its advertising revenues rose by 53%, and the company expects to have two billion users worldwide in the first half of 2017. Facebook expects growth in its news feed advertising revenues to stall in the near future, but it is reportedly planning a video app which will enable it to compete with television channels for television advertising revenues.
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