Silicon Knights found itself in a very bad way earlier this May when the Canadian studio lost their court case against Epic Games over allegedly "sabotaging" the development of Too Human on the Xbox 360 as a result of their issues with Unreal Engine 3. However, the North Carolina District Court's jury instead found Silicon Knights guilty of all of Epic's counterclaims including copyright infringement over nicking Unreal Engine 3 code.
Silicon Knights was ordered to cough up $4.45 million USD in damages as a result, but new court documents which emerged two days ago reveal that things are about to get a lot costlier for the studio.
Silicon Knights must cough up an additional $4.7 million USD to cover Epic's legal costs, bringing the total amount of money the studio must pay to $9.2 million USD.
As a result of Silicon Knights' misappropriation of Epic's trade secrets through what the jury deemed deliberate copying of Unreal Engine 3 code to create their own engine, North Carolina District Judge James Dever has also ordered the studio to not only remove all of Epic's technology from its existing game engine, but destroy the code for all prior versions of it. Silicon Knights even has to destroy any code for unreleased and upcoming titles should they contain any tech "borrowed" from Epic.
Siicon Knights must allow Epic to "independently verify" for themselves that their work will be clean of any Epic's Unreal Engine technology, which could mean handing over any computer equipment and databases for review and assessment. The deadline to comply with all this has been set to December 21st, 2012.