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TimeGate hit with $7.35 million in damages over SouthPeak suit

SouthPeak Interactive has been successful in an appeal on its long-running lawsuit with TimeGate Studios, leaving the Section 8 developer facing heavy damages.

Last week, the US Court of Appeals ruled in favour of SouthPeak in the latest in a series of back-and-forths dating back to 2008.

TimeGate originally filed suit against SouthPeak over unpaid Section 8 royalties and localisation costs, but SouthPeak responded with its own suit. Third-party arbitration ruled in favour of SouthPeak, but a federal court overturned the decision in March last year.

Unfortunately for Timegate, the success of SouthPeak's appeal means the arbitration decision stands, and it is liable for $7.35 in damages and the loss of the Section 8 property.

Timegate told Polygon that it met yesterday to discuss how the decision affects its future and that of recently-announced project Minimum, which was supposed to into alpha on Steam Early Access earlier this week.

There was a time when "the guys suing SouthPeak over Section 8" was Timegate's most frequently-cited descriptor, but now they're "the guys who seem to have made most of Aliens: Colonial Marines". It laid off a lot of staff last month.

Thanks, PCGamesN.

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Brenna Hillier avatar

Brenna Hillier

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Based in Australia and having come from a lengthy career in the Aussie games media, Brenna worked as VG247's remote Deputy Editor for several years, covering news and events from the other side of the planet to the rest of the team. After leaving VG247, Brenna retired from games media and crossed over to development, working as a writer on several video games.

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