Creators of the Unreal game engine Games are being sued by Silicon Knights, according to a report published by Gamasutra, with the developer alleging breach of contract against Epic.

Epic's Mark Rein admitted the to the press late yesterday but would not delve into specifics, stating: "We believe the claims against us are unfounded and without merit and we intend to fully defend against them."

Online reports suggest feel let down by the support they received having licensing the Unreal game engine, the lawsuit claiming that Epic failed to deliver a kit in a timely manner. The suit adds that Epic's support for Silicon Knights was lacklustre, alleging that the developer were too busy finishing titles like Unreal Tournament and to aid them as previously agreed.

The Unreal Engine 3 was being used by SK in upcoming title Too Human, but the lawsuit implies the developer wrote their own engine after delays from Epic. More soon.

By Luke Guttridge