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Studio loses Section 8 IP in appeal as court reverses decision

Timegate on hook for $8m in legal battle

The legal battle between TimeGate and Southpeak Interactive took another turn today as an appeals court reversed an earlier decision granting the studio $7.8m in damages and control of the Section 8 IP.

TimeGate, also partially involved in the development of Aliens: Colonial Marines, filed suit against the publisher of Section 8 in 2009, claiming it withheld royalty payments and entered into a licensing deal without permission.

Both parties went into arbitration, which ended when a third party granted Southpeak control of the IP and $7.8m in damages.

In 2012 TimeGate succeeded in having the decision reversed in court, but Southpeak filed its own appeal.

Now a US Court of Appeals document dated April 9th has surfaced, showing that TimeGate is once again on the losing side.

Aside from the possibility of losing the Section 8 IP, a source close to the matter tells Polygon that TimeGate is reconsidering the future of its newly announced multiplayer shooter Minimum.

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