The lawsuit was filed by ZeniMax against Occulus in 2014 which led to Facebook CEO Zuckerberg testifying in a public trial last month.
Facebook bought Oculus in 2014. Zuckerberg claimed he was unaware of the intellectual property issue between Oculus and ZeniMax.
ZeniMax had been seeking a $2 billion verdict against Oculus, as reported by Business Insider. Oculus is paying $200 million for violating the nondisclosure agreement, and $50 million for copyright infringement.
Former Oculus CEO Brendan Iribe will have to pay ZeniMax $150 million for false designation, and Oculus cofounder Palmer Luckey must pay ZeniMax $50 million for false designation.
Oculus said it would appeal the ruling.