Facebook founder and CEO Mark Zuckerberg looks at Peru’s President Pedro Pablo Kuczynski trying a virtual reality headset
The judge found that Oculus, bought by Facebook in 2014, broke a contract made with video game developer Zenimax during the launching of its own VR headset.
By the fourth quarter of the year, Facebook’s net profit doubled to $3.6bn, reports BBC.
The social network is said to be on course to hit two billion users in the first half of 2017. Reports suggested the Internet-based giant 53% of the network’s revenue is due to advertisements.
Zenimax had earlier on argued that its early innovations in virtual reality was illegally copied when Oculus built its own headset called the Rift.
Palmer Luckey, co-founder of Oculus VR Inc., left, plays the new video game “Eagle Flight VR” during an Ubisoft news conference
Oculus spokesperson said that the judge prohibited this argument, and did not find the firm to have broken the signed contract with Zenimax nor did it trespass some of its copyright.
Palmer Luckey, the co-founder of Oculus, is accused of having broken a non-disclosure agreement with the firm.
Only a few people would have given Facebooks founder, Mark Zuckerberg as many headaches as Palmer Luckey.
When Facebook stepped in to purchase the firm for $2bn, he was paid amply indeed. Then later it went a bit downhill.
It was discovered that he was using some of that money he was paid to fund a pro-Donald Trump trolling campaign. This led to Facebook removing him from view by the public. He didn’t even show up to his own company developer’s conference the previous year.
As a matter of fact, Palmer Luckey is still an employee in Facebook, but what he is doing there is still unknown. The company will not even tell anyone his job title.
Mark Zuckerberg, testified the previous month that the idea that Oculus’ products are based on technology developed by someone else is totally incorrect.
Most of Facebook’s fourth-quarter revenue – which skipped from 54% to $27.6bn originated from advertisements done on its social network.
Martin Garner, a senior analyst at CCS Insight, said that Facebook had another stellar quarter, delivering record revenue, user growth and profitability, as it rides the shift of advertising to online.
However, he added that he expected advertising growth to slow in 2017, as a result it is expected to be less profitable this year.
Mr. Garner added that other challenges Facebook faced this year included a changing approach to privacy in Europe, an uncertain business landscape in the US and challenges in China.
In a call with analysts on Wednesday, Facebook executives gestured it would confront the challenge through the use of more artificial intelligence.
They also added that many of Facebook’s new users were in India, where telecom operators had offered unrestricted data packages for Facebook traffic.
For the whole year, Facebook has grown its net profit by 177% to $10.2bn.