After losing a court appeal over a fraud suit between themselves and publisher SouthPeak Interactive, TimeGate Studios faces 7.35 million in damages and the loss of the Section 8 license.
In 2009, TimeGate sued SouthPeak Interactive, claiming the publisher withheld royalties and did not deliver on their responsibilities localizing Section 8. After SouthPeak filed a countersuit, third party arbitration ruled in favor of SouthPeak, awarding them $7.35 million in compensatory damages and the Section 8 license. That decision was then overturned last March.
The U.S. Court of Appeals for the Fifth Circuit as of April 9 has now reinstated the arbitration award for SouthPeak, meaning TimeGate must pay the $7.35 million to SouthPeak and turn over the Section 8 IP unless they can successfully file to appeal the court decision.
TimeGate Studios co-developed Aliens: Colonial Marines with Gearbox. They announced their latest project, Minimum, multiplayer shooter, on the same day as the court decision: April 9.