Lighthouse
From Virtual Reality, Augmented Reality Wiki

Valve plans to make Lighthouse freely available to all hardware manufactures.
How It Works
Central to the Lighthouse technology are the Base Stations, small rectangular objects placed in the room. They serve as reference points for any positionally tracked devices such as the HMDs and controllers. Base Stations perform this function by flooding the room with a non-visible light, the receptors on the tracked devices would intercept the light and figure out where they are in relation to the Base Stations.