They're talking about the SDK and most of the headset technology as well as the firmware. Luckey's key contribution was the wide-angle optics.
Re:Zenimax Sues Oculus
by interpol_p on Thursday May 22, 2014 @12:33AM
(#7782119)
Actually, the wide-angle optics came from Luckey's professor, Mark Bolas [1,2]. Luckey combined it with the head angle tracking and a vastly polished design for the unit, though.
[1] http://projects.ict.usc.edu/mxr/diy/fov2go-viewer/ [2] http://blog.kenperlin.com/?p=14708
Looks like a negotiating strategy by Zenimax... and since Oculus lacks deep pockets, which pressure could be effective. That is, absent the counter-pressure of public opinion...