Facebook Inc 's FB virtual reality (VR) division, Oculus has reportedly been dragged to court by a California-based technology firm, Techno View Inc. for "infringing" ImmersiON-VRelia's 3D imaging patent design. The design generates left and right perspectives in a 3D video game, per reports.
ImmersiON-VRelia is a VR headset maker based in Redwood City. Techno View is litigating on its behalf, as reported by Reuters. The report further adds that Techno View "may add claims relating to other patents owned ImmersiON-VRelia at a later date."
Earlier this year, Facebook was slapped with a $2 billion lawsuit filed against Oculus by video game company, ZeniMax. Per media reports, ZeniMax claims that Oculus "stole" its intellectual property to boost its own VR research. Though Facebook denied all allegations, it lost the lawsuit and was directed by the court to shell out $500 million in damages to ZeniMax.
Oculus was founded by Palmer Luckey and Brendan Iribe in 2012 and acquired by Facebook in 2014. Facebook's ambitious AR/VR plans are being fueled by Oculus. A few days back, Zuckerberg said that Facebook was going to spend over $3 billion over the next 10 years.
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AR/VR is the next big technological innovation along with Artificial Intelligence (AI). According to a recent IDC report, global revenues of the AR/VR market are expected to grow at a CAGR of 198% from a period of 2015-2020 to $143.3 billion by 2020. Meanwhile, global revenues of the Cognitive & AI market are expected to grow at a CAGR of 54.4% to over $46 billion by 2020.Consequently, all the tech giants like Facebook, Microsoft MSFT and Alphabet GOOGL are pumping huge resources to develop this new technology.
Last year in December, Facebook split Oculus into two separate units-one focusing on developing VR for mobiles, the other one focusing on PCs. Iribe will spearhead the VR for PC unit while ex-Amazon.com Inc AMZN ) executive, Jon Thomason will lead the Mobile VR division.
A few days back, Facebook roped in ex-Xiaomi vice president, Hugo Barra to spearhead the company's VR initiatives as well as the Oculus unit. Zuckerberg added "Hugo shares my belief that virtual and augmented reality will be the next major computing platform. They'll enable us to experience completely new things and be more creative than ever before. Hugo is going to help build that future, and I'm looking forward to having him on our team."
Recently, per media reports, Luckey quit Oculus following a controversy during the U.S. presidential election in 2016. He has remained mostly away from the media ever since reports surfaced that he was financing a group that created anti-Hillary Clinton memes for the web.
At present, Facebook has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
In the past one year, Facebook's shares have generated a return of 29.18%, compared with the Zacks Internet Services industry's gain of 7.75%.
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