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The proprietary technology and know-how Mr. Carmack developed when he was a ZeniMax employee, and used by Oculus, are owned by ZeniMax
unksol :And they own the code he wrote for them. duh
The problem I'm seeing is that neither side is being very clear about whether he wrote it FOR them, or independently WHILE he was employed there, but not for them. If he wrote software commissioned by ZeniMax and done using their resources [especially other team members], then it's their's and Oculus needs to license the tech. if he pulled a Wozniak and stayed after hours to work on his own projects by himself, then it's not so cut and dry. And of course if he did it at home but happened to be employed by ZeniMax then they have absolutely no claim to it.
Most likely, Facebook will negotiate with ZeniMax "out of court" for a unspecified financial settlement.
"During February 2014, Carmack was asked by ZeniMax Media to disclose all virtual reality inventions he developed while still employed at id Software."
It's their company, you'd think they'd know what they had or didn't have and who worked on it. Sounds like they're grasping straws. That's pretty much admission that they started a lawsuit with barely any ground to stand on.