After developer Silicon Knights sued Epic Games on the grounds of Epic providing a less-than-capable Unreal Engine 3 to Silicon Knights, Epic has responded with a Motion to Dismiss.
NextGen reports on a clause in the UE3 license agreement that SK had overlooked:
In addition, what Epic is seeking in response to SK's demands, one of which was to direct all sales of Gears of War to SK as compensation for damages they incurred, Epic responds with some serious demands that could signal the death of Too Human, SK's upcoming game:
Finally, Gamespot notes:
News source: BeyondUnreal