Genius and Numark have seemingly been defeated in their bid to take on Activision, after failing in an LA court complaint against the publisher, which demanded the return of assets for unreleased game Scratch: Ultimate DJ.

Activision purchased the developer of Scratch (7 Studios), much to the consternation of those previously backing the title, regarded as a challenger to Activision's own title.

"These allegations are nothing more than an attempt by Genius to place blame for the game's delay, as well as to divert attention from the cash flow, liquidity and revenue challenges Genius detailed in its March 30, 2009, SEC filing," offered in a robust statement.

"By their own admission in October 2008, the game had fallen behind in production, which was well before Activision had any involvement with Genius, Numark or California 7 Studios regarding the game."

By Luke Guttridge