Los Angeles - A legal skirmish has emerged between video game developer Epic Games, which created the Unreal Engine 3 game development engine, and Silicon Knights, a fellow developer that licensed the engine for use in its own titles.

Canada-based Silicon Knights first filed suit against Epic, claiming the company withheld a full version of Unreal Engine 3 -- which was still in development -- that in turn harmed the development of its "Too Human" game.

The company told GameDaily.biz it will seek damages in the "millions of dollars."

Cary, N.C.-based Epic then countersued Silicon Knights, for copyright infringement, breach of contract, misappropriation of trade secrets and other charges, alleging that SK failed to pay licensing fees for Unreal Engine 3, and furthermore that it stole code from Epic to develop its own "Silicon Knights Engine."

Epic's counterclaim against Silicon Knights seeks compensatory damages in excess of $650,000.

Related Links:
http://biz.gamedaily.com/industry/feature/?id=17099

http://biz.gamedaily.com/industry/feature/?id=17095

http://www.epicgames.com

http://www.siliconknights.com