Epic has been hugely successful with the Unreal Engine over the years. In its various iterations it has been used for numerous games by numerous companies, who license the engine from Epic. The latest version of the engine, UE3, powers the infamous Gears of War and is behind the upcoming Unreal Tournament 3.
Not everyone, however, is satisfied with it. One game developer has become so infuriated at the "misrepresentation" of the engine that they are taking Epic to court and is suing them. They are suing them over what they claim is a breach of contract and fraud, along with a few other claims. The company, Silicon Knights, licensed the engine for use in development of an unreleased Xbox 360 title called "Too Human". SK is claiming that Epic waited too long to release the engine and that it did not function the way it was supposed to. On top of that, they claim Epic isn't willing to fix the issues they have:
"For more than a year, we have been trying to reach an agreement with Epic to resolve these issues without resorting to litigation, but were unable to come to reasonable terms with Epic. Regrettably, we are now forced to go to court in order to achieve satisfaction."
Epic is loosely commenting on the situation, saying the claims are unfounded. The outcome of the case might have an impact on any company that licensed UE3 in the past, so it is an interesting one to watch.