recent court loss to Epic Games, studio head Denis Dyack told Joystiq. After losing a five-year-long lawsuit this week to Epic Games, Silicon Knights was ordered to fork over $4.45 million in damages to Epic. Dyack said he was "disappointed by the outcome," and that his company would appeal the ruling.
Silicon Knights sued Epic Games in 2007 due to a dispute over Silicon Knights' licensing of Epic's Unreal Engine 3. SK claimed that Epic intentionally withheld pieces of the engine – an engine that was originally licensed to help build Too Human – which resulted in repeated delays of that project. A jury in the US District Court for the Eastern District of North Carolina disagreed with Silicon Knights' assertion, and found that the Canadian studio instead caused damage to Epic's license agreement and trade secrets.