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.

Sunnyvale, Calif. - Japanese game publisher Capcom said on Tuesday that it has licensed Epic Games' Unreal Engine 3 game physics engine. Capcom said the engine will be utilized in an unannounced project being developed in North America.