TimeGate, the developer behind Section 8, portions of Aliens: Colonial Marines, and the recently announced Minimum, have just lost a court appeal against a lawsuit mounted against the studio by publisher SouthPeak Interactive.
TimeGate are now in the unenviable position of owing the publisher $7.3 million.
Back in 2009, following the release of TimeGate’s multiplayer shooter, Section 8, the developer sued the game’s publisher, SouthPeak, for not paying royalties or localising the game for sale in other regions.
In response, SouthPeak countersued, claiming that TimeGate had failed to invest enough into the costs of Section 8’s development. SouthPeak won their countersuit, demanding $7.3 million from the small developer as well as the full control of the Section 8 license. However, before TimeGate paid up, a federal court ruling rejected the suit. All happy, right?
Well, last week the U.S. Court of Appeals decided to reverse this federal court ruling, meaning that, once again, TimeGate owe SouthPeak $7.3 million.