Cary News

Jury awards $4.5M to Cary-based Epic Games

Epic Games’ five-year legal battle against a Canadian video game company has ended with a nearly $4.5 million jury verdict in its favor.

Silicon Knights of Ontario must pay the Cary-based company $2.65 million for breach of a license agreement and $1.8 million for copyright infringement and misappropriation of a trade secret. The jury verdict was handed down last week.

The legal battle was initiated by Silicon Knights, which sued Epic in August 2007 for, among other things, misrepresentation and unfair practices.

Silicon Knights alleged that it licensed Epic’s Unreal Engine 3 software to develop video games but the software didn’t work as advertised. The lawsuit also accused Epic of failing to provide technical support to licensees at the same time it was using its licensing fees “to launch its own game to widespread commercial success while simultaneously sabotaging efforts by Silicon Knights and others to develop their own video games.”

Epic is best known for its blockbuster “Gears of War” and “Unreal Tournament” franchises, but its Unreal Engine is enormously popular among video game developers. Epic responded to Silicon Knights’ lawsuit with a counter-suit that accused Silicon Knights of a plot to misappropriate Epic’s technology, including using it for a game engine that it was developing to compete with Unreal Engine 3.

Epic has 30 days to file a request for reimbursement of the attorney’s fees and costs it incurred.