Epic Games Prevails Over Silicon Knights in Lawsuit, is Awarded $4.45 Million In Countersuit

on May 30, 2012 7:24 PM

We now have a legally defined reason as to why Too Human did so horribly. Over Twitter, Epic Games VP Mark Rein posted “Case Over. Jury finds for Epic on all counts.” The five-year long lawsuit between Silicon Knights and Epic games began when Knights accused Epic of “sabotaging efforts by Silicon Knights and others to develop their own video games” through use of Epic’s Unreal Engine 3.

Silicon Knights alleged that issues with the Unreal engine resulted in a two-year delay and low sales that collectively cost them a total of $58 million due to lost royalties, publisher bonuses, and future project profits.  The canadian developer brought up charges against Epic including fraud, contract rescission or reformation, common law breach of contract, negligent misrepresentation, breach of warranty, unfair and deceptive trade practices, intentional interference with contractual relations, intentional interference with prospective economic advantage, common law unfair competition, unjust enrichment, and breach of contract under the North Carolina Uniform Commercial Code.

North Carolina chief district judge James Dever III took issue with Knights’ analyst’s calculations and eventually decided that Silicon Knights would only be able to sue for $1 after they failed to provide a detailed breakdown of damages. The jury also ruled in favor of all of Epic’s counterclaims, totaling to $4.45 Million as well as the option to have Silicon reimburse Epic for all of their legal fees. The counterclaims stated that Silicon Knights¬†misappropriated trade secrets, breached the license agreement of Epic’s Unreal Engine, and committed copyright infringement against Epic in the Unreal Engine 3 code.

 /  Staff Writer
I'm a twenty-seven year old video game design student from Sunset Park, Brooklyn. If I'm not working or doing schoolwork, I can typically be found on Xbox Live under the name "Red Ring Ryko". I am thoroughly enamored with video games as a means of interactive expression, and am fully dedicated to bolstering the legitimacy of the medium and its culture.