Well the battle continues as Epic has countersued
Silicon Knights saying they misappropriated the Unreal Engine and stated that the lawsuit by Knights makes it look like they want the engine for free. I'll be following this one closely as I'm sure most people will be doing as a few Unreal Engine based games have hit a small delay with the recent John Woo's Stranglehold
being the latest victim. Then again, the folks at Knights haven't had a good track record with their delays as well.