Epic vs. Silicon Knights lawsuit claims now worth $1 each

Even if Silicon Knights wins, its earnings will be a far cry from the $58 million in damages it seeks

The five-year legal battle between developer Silicon Knights and developer Epic Games took an interesting turn as it headed into trial on May 14. Though Silicon Knights was seeking $58 million in damages due to the issues it had with Epic's Unreal Engine 3 during the development of Too Human, Chief District Judge James Dever III decided the final payout to Silicon Knights would be a mere $1 per claim. Ouch.

In December of 2011, Judge Dever III granted Epic's motion to exclude testimony from Silicon Knights' key expert, Terry Lloyd. Lloyd's testimony was meant to show how the developer lost $58 million in dealing with Unreal Engine 3, broken down into areas like potential royalties and decreased sales. Following that blow, Epic's legal team filed a motion preventing Silicon Knights from offering any other evidence regarding future losses.

On May 7, Judge Dever III ruled that Silicon Knights did not provide a full breakdown of damages, leading him to assign damages of $1 for each claim.


Five years for $1? Are you serious?

It's likely that with the decreased damages, Silicon Knights will seek to end the case as quickly as possible. The case is still expected to run another week, with further testimony from Epic Games president Mike Capps, Silicon Knights president Denis Dyack, Epic Games vice president Mark Rein and Epic Games founder Tim Sweeney.

[Via Polygon & The Escapist]

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Latest comments (10)

Alex Bunch Proof Reader, ZiCorp Studios4 years ago
Yup, the lawsuits certainly are the exciting side of gaming at the present time. I remember when it was all about the games themselves. Tuh, how naive!
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Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.4 years ago
So SK's expert witness testimony regarding their losses is thrown out and then the judge declares SK's damages to be $1 because they never provided the court with a figure for their losses? WTF?

What kind of circular process is that?
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John Donnelly Quality Assurance 4 years ago
One in which Epic's lawyers are smarter than the ones hired by SK.

In these types of cases only the legal teams win..
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Show all comments (10)
That sounds absolutely ridiculous. Maybe they can sue the judge, and get him disbarred...
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Gregory Keenan4 years ago
I personally hope SK continue with the case. While they are still going to lose money now, too many developers and publishers are abusing smaller companies situations knowing they can't afford the legal team to challenge it.

It may not be the money, but it would be moral vindication (if of course Epic did fail in its side of the licencing deal)
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Nicholas Pantazis Senior Editor, VGChartz Ltd4 years ago
I doubt they'll cut the case short. They'll try to win, then when they have the win they'll appeal the damages ruling.
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David Radd Senior Editor, IndustryGamers4 years ago
I'd think if SK was going to settle, they would have already done so. I think the twists and turns of this case is far from over.
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Personally I think its a little ridiculous the same judge that bars their key witness then bars any future witnesses then rules max damages as $1 because of insufficient evidence provided.... seems unfair and biased to me, not exactly the actions of anyone deserving to be called judge, I'd take a very careful look at that judges associations and track record, he doesnt seem to be fair and impartial, and appeal, ensuring another judge gets involved, I dont think epic owes 58 million for what it did that's a bit over the top or well failed to do but there's reasonable evidence given through leaked emails alone that clearly UE3 was not the companies priority which was snubbed in favor of their own title at the time so clearly that caused some damage at least likely to be in the millions, given the licensing fee's involved having the engine as the lowest priority in the business is hardly fair on the first licensee's.

Edited 1 times. Last edit by Alexander McConnell on 30th May 2012 8:42pm

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Adam Campbell Producer, Hopster4 years ago
A lot people's views on this case are purely emotive.
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Greg Wilcox Creator, Destroy All Fanboys! 3 years ago
*Idea!* Maybe SK can buy up all the remaining copies of X-Men Destiny that were SUPPOSED to be pulled from retail stores by court order or whatever that article I read about the game getting "recalled" said, have the team open and sign them and resell them to raise money as collector's items. RARE! HTF! OOP! I'd buy THAT for a dollar... OK, three to five, tops.

-10 intelligence if you take this post too seriously, by the way...
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