Did they seriously say that? The theft and use (without permission or royalty agreement) alone was harm.Oculus is countering that Zenimax is basically making a mountain out of a molehill and that they were not harmed at all by Oculus when they allegedly used their code. Their main point being that Zenimax can't just scream for compensation when no actual harm was done, nor could they rightfully make a valid claim to a monetary amount.
Unless Occulus rewrites it's code from scratch, they will be paying royalties.