Epic, the current king of 3D game engine technology, has had a great deal of success licensing its Unreal Engine platform to a multitude of game developers over the years. Unreal Engine 3, the latest version, powers blockbuster titles such as Gears of War and Rainbow Six: Las Vegas, and will be the muscle behind upcoming titles like Bioshock and Unreal Tournament 3. In general, licensing the technology while also using it to develop its own games has gone extremely well for Epic.
You see, no matter what, Epic wins. If an Epic title is a blockbuster, they rake in the dough, if a game that uses the Unreal Engine technology is a blockbuster, Epic rakes in the royalty dough. Even if Epic ends up directly competing with another UE tech game, Epic wins.
Well, the golden age may be coming to an end as a company licensing UnrealEngine 3 is very upset with Epic and its handling of contractual obligations. Silicon Knights, developers of the upcoming next-generation title, Too Human, are angry over what they feel are contractual breaches; services and responsibilities Epic agreed to in the licensing contract that were not fulfilled.
While game news isn't really the focus here, this news story is a very interesting look at IP and contractual obligations between a tech developer, and whoever licenses said technology. Hit the link below to see the full report at Gamasutra.