After a protracted legal battle lasting five years, a North Carolina court has closed the book on a suit brought forth by Silicon Knights against Epic Games, alleging that the developer of Unreal Engine 3 competed unfairly by using funds from licensing the engine to develop Gears of War instead of making improvements.
According to a statement given to Polygon by Epic's legal counsel, a jury has dismissed all claims against Epic as well as finding in their favor on a counterclaim that Silicon Knights were in breach of their licensing agreement. The court has awarded $4.45 million in damages to Epic Games, which doesn't include possible coverage of their legal fees; Epic has thirty days to file a request for a reimbursement of that from Silicon Knights as well.
Ouch. I guess now probably isn't the time to get excited about the possibility of an Eternal Darkness sequel, eh?