AltspaceVR Shutting Down

AltspaceVR, the popular virtual reality social platform, and the eponymous company behind it, will be closing their respective doors on August 3rd. This is surprising, as AltspaceVR has been around since 2013, was well-funded, had a good amount of users given VR’s still-niche status, and had apparently more funding lined up to continue operation and development of their platform (that funding falling through was, according to the announcement linked above, the primary reason for the impending shut-down).

But besides the direct impact on commercial VR as a whole, and the bad omen of a major player closing down, this is also personal to me. Not as a user of AltspaceVR’s service — I have to admit I’ve only tried it for minutes at a time at trade shows or conferences — but as someone who was, albeit tangentially, involved with the company and the people working there.

After having given a presentation at an early SVVR meet-up, I invited SVVR’s founder, Karl Krantz, to visit me at my VR lab at UC Davis. He made the trip a short while later, and brought a few friends, including “Cymatic” Bruce Wooden, Eric Romo, and Gavan Wilhite. I showed them our array of VR hardware, the general VR work we were doing, and specifically our work in VR tele-presence and remote collaboration. According to the people involved, AltspaceVR was founded during the drive back to the Bay Area.

In addition, I co-advised one of AltspaceVR’s developers when he was a PhD student at UC Davis, and I visited them in the summer of 2015 to give a talk about input device and interaction abstraction in multi-platform VR development. During that visit, Eric Romo also gave me my first taste of the newly-released HTC Vive Development Kit (Vive DK1).

For all that, I am sad to see them go under, and I wish everybody who is currently working there all the best for their future endeavors.

Possibly related to this, another piece of news surfaced today: AltspaceVR was named defendant in a patent infringement lawsuit filed by Virtual Immersion Technologies, LLC, regarding this 2002 patent. I do not know whether this filing was a cause in AltspaceVR’s closing, but it is possible that the prospect of a costly court case, or stiff licensing fees, led to some investors getting cold feet.

Either way, this patent deserves closer scrutiny as it is quite broad, and has recently changed ownership from the original inventors to the plaintiff, who has so far been using it exclusively to sue VR companies for infringement. The fact that it specifically claims the use of video to represent performers or users in a shared virtual space might mean that it covers platforms such as our tele-collaboration framework, which would be unfortunate. I have a hunch that this patent, due to its arguably broad applicability, will be the subject of a major legal battle in the near future, and while there is a lot of prior art in multiplayer/multi-user VR, that video component means I cannot dismiss the patent out of hand.