After shutting down Phoenix Online Studios' lovingly crafted King's Quest fan project due to a licensing conflict back in February, it seems Activision has reconsidered its position. According to the indie developer's blog, Activision has rescinded its cease and desist, and has granted the studio a non-commercial license to release the game.

On July 10, Phoenix will release Chapter One of its 3D tribute to Roberta Williams' beloved adventure franchise, titled The Silver Lining. Thanks to Activision's demands, the game will be released for free. Click past the jump to see the title's (re)announcement trailer, or check out our impressions of an early demo of the game we checked out earlier this year.

This article was originally published on Joystiq.