I think the real concern is that there is nothing in PATENTS that restricts itself to software patents, if tomorrow say a University patents a new AR/VR Chip an

I think the real concern is that there is nothing in PATENTS that restricts itself to software patents, if tomorrow say a University patents a new AR/VR Chip and Facebook/Oculus infringes on that patent there the PATENTS would affect all researchers/students at that University. If I am mistaken please show me where it states that only the agreement is restricted to software patents alone. I am completely fine with Facebook's choice at end of the day it's their hard work and right. However it's important to understand broader implications.