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Developer Epic Games’s motion to have rival Silicon Knights’ brea...

Developer Epic Games’s motion to have rival Silicon Knights’ breach of contract suit filed against it in U.S. District Court, Raleigh, N.C., this past summer dismissed was denied early this week by Judge James Dever, a court document showed.…

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A separate order by the judge the same day showed he ordered that reports from “retained experts” be presented in court by July 1 and those from “rebuttal experts” by August 1. He also ordered that all fact discovery be completed by June 2 and all expert discovery be completed by Aug. 29. Silicon had accused Epic of making “false and misleading” statements in licensing Silicon to use Epic’s Unreal Engine 3 technology to develop games. Silicon claimed that Epic “violated” the deal by “failing to provide a working game engine.” That caused Silicon to experience “considerable losses” and forced it to spend its minimal time and resources to build its own engine instead of developing a planned game. Silicon also accused Epic of “unfair competition,” claiming Epic “intentionally and wrongfully” used licensing fees collected for the engine “to launch its own game” -- Gears of War -- “to widespread commercial success while simultaneously sabotaging efforts” by Silicon and others to develop their own games. Silicon requested a jury trial, unspecified damages and the deal with Epic to be “rescinded” or changed so that Silicon didn’t have to use the Unreal engine exclusively or at all. It also sought a permanent injunction against Epic to prevent it from further “unfair” business practices against Silicon, and for Epic to give up any profits from Gears of War. Epic countersued in August, accusing Silicon of misappropriating Epic’s licensed technology and claiming Silicon’s suit “lacks factual or legal merit” and is merely part of Silicon’s overall misappropriation plan (CED Aug 13 p10). Epic complained Silicon wants to use Epic’s technology, “pay nothing for it and use it any way it pleases.” Epic requested compensatory damages over $650,000 and unspecified punitive damages and legal fees. It also asked for preliminary and permanent injunctions against Silicon and an order that all infringing games, code and other articles from Silicon “be destroyed.” On the same day as the judge’s orders, Epic requested expedited discovery in the case, contending it “made a reasonable showing that it will continue to suffer irreparable harm” from Silicon’s conduct. Epic also argued its request for expedited discovery was “neither untimely nor burdensome.” But Dever also denied that request.