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Silicon Knights

Industry	Video games
Founded	1992
Defunct	2014
Headquarters	St. Catharines, Ontario, Canada
Key people	Denis Dyack Michael Mays
Number of employees	97 (July 2011) 5 (October 2012)
Website	siliconknights.com (archived)

Silicon Knights was a Canadian video game developer. Founded in 1992 by Denis Dyack, the company was headquartered in St. Catharines, Ontario. They started developing for computers such as the Atari ST and IBM PC compatibles. After 1996, they moved to console titles.

Dyack left Silicon Knights to form a new game studio, Precursor Games, after the loss of a court case against Epic Games over the game engine Unreal Engine 3. Epic Games won the case and a counter-suit for $4.45 million on grounds of copyright infringement, misappropriation of trade secrets, and breach of contract. Following the case, Silicon Knights filed for bankruptcy on May 16, 2014.

Games

Released

Silicon Knights' first games were real-time strategy/action hybrids for computers. Silicon Knights' last PC game, Blood Omen: Legacy of Kain was published in 1996. Since that time, Silicon Knights moved from creating PC games to console titles. In 2000, Silicon Knights was signed by Nintendo to create games exclusively for its consoles, during which time it produced Eternal Darkness: Sanity's Requiem. Together with Nintendo, Silicon Knights worked with Konami to create Metal Gear Solid: The Twin Snakes. In 2004, the company ended exclusivity with Nintendo. In 2005, it partnered with publisher Microsoft Game Studios for Too Human, though Nintendo still owned stock in the company. In 2008, the company released Too Human, which was published by Microsoft for the Xbox 360. The final game developed by the company, X-Men: Destiny, was released in September 2011 for multiple console platforms.

Canceled

Canceled games included Silent Hill: The Box (later known as just The Box and The Ritualyst), Too Human 2 (Too Human: Rise of the Giants), Too Human 3, Eternal Darkness 2, and the little-known projects Siren in the Maelstrom, The Sandman and King's Quest.

Founding of Eight

Silicon Knights was a strong proponent of collaboration with academia and was a key player in the formation of Eight. Eight: The Hamilton Institute for Interactive Digital Media is a collaboration between Silicon Knights, McMaster University, the Art Gallery of Hamilton (AGH) and Mohawk College to create a novel academic and research model around interactive digital media and will help pioneer and shape cutting-edge advances in the interactive entertainment arena.

Lawsuit with Epic Games

On July 19, 2007, Silicon Knights sued Epic Games for failure to "provide a working game engine", causing the Ontario-based game developer to "experience considerable losses." The suit alleged that Epic Games was "sabotaging" Unreal Engine 3 licensees. Epic's licensing document stated that a working version of the engine would be available within six months of the Xbox 360 developer kits being released. Silicon Knights claimed that Epic not only missed this deadline, but that when a working version of the engine was eventually released, the documentation was insufficient. The game studio also claimed Epic had withheld vital improvements to the game engine, claiming they were "game specific", while also using licensing fees to fund development of its own titles rather than the engine itself.

In August 2007, Epic Games counter-sued Silicon Knights, alleging the studio was aware when it signed on that certain features of Unreal Engine 3 were still in development and that components would continue to be developed and added as Epic completed work on Gears of War. Therefore, in a statement, Epic said that "SK knew when it committed to the licensing agreement that Unreal Engine 3 may not meet its requirements and may not be modified to meet them." Additionally, the counter-suit claimed that Silicon Knights had "made unauthorized use of Epic's Licensed Technology" and had "infringed and otherwise violated Epic's intellectual property rights, including Epic's copyrighted works, trade secrets, know how and confidential information" by incorporating Unreal Engine 3 code into its own engine. Furthermore, Epic claimed the Canadian developer broke the contract by employing this derivative work in an internal title and a second game with Sega, a partnership for which it never received a license fee.

On May 30, 2012, Epic Games prevailed against Silicon Knights' lawsuit, and won its counter-suit for $4.45 million on grounds of copyright infringement, misappropriation of trade secrets, and breach of contract, an injury award that was later doubled due to prejudgment interest, attorneys' fees and costs. Consistent with Epic's counterclaims, the presiding judge, James C. Dever III, stated that Silicon Knights had "deliberately and repeatedly copied thousands of lines of Epic Games' copyrighted code, and then attempted to conceal its wrongdoing by removing Epic Games' copyright notices and by disguising Epic Games' copyrighted code as Silicon Knights' own." Evidence against Silicon Knights was "overwhelming", said Dever, as it not only copied functional code but also "non-functional, internal comments Epic Games' programmers had left for themselves."

As a result, on November 7, 2012, Silicon Knights was directed by the court to destroy all game code derived from Unreal Engine 3 and all information from licensee-restricted areas of Epic's Unreal Engine documentation website, and to permit Epic Games access to the company's servers and other devices to ensure these items had been removed. In addition, the studio was instructed to recall and destroy all unsold retail copies of games built with Unreal Engine 3 code, including Too Human, X-Men Destiny, The Sandman, The Box/Ritualyst, and Siren in the Maelstrom (the latter three titles were projects never released, or even officially announced).

Talking to IGN in 2019, Dyack expressed regrets over the lawsuit not just because of the loss but also the fact he underestimated the amount of time it took to settle the litigation. Had he known then, Dyack said he would have reconsidered pursuing the lawsuit.

Government funding

Provincial

In February 2008, Silicon Knights was granted $500 thousand by the Ontario Media Development Corporation (OMDC) through its Video Game Prototype Initiative. Using this funding, they were to create a prototype for a "third-person action/psychological thriller".

Federal

In April 2010, it was announced that the company would receive nearly $4 million through the Canadian government's Community Adjustment Fund. The purpose of the loan was to allow the hiring of 65 new staff members, who would be working on a new game targeting multiple platforms. The game was estimated to take two to five years to complete.

Provincial

In July 2011, Silicon Knights was awarded $2.5 million to be distributed over five years in provincial funding to improve its technology, create new products and become a self-publishing company. The investment would supposedly have allowed the company to improve its technology, hire 80 new people while keeping 97 current jobs and allow the company to become "self sustaining." As of November 2011, Silicon Knights had not received any of this funding.

Filing for bankruptcy

On May 16, 2014, following the loss of the court case, Silicon Knights filed for bankruptcy and a Certificate of Appointment was issued by the Office of the Superintendent of Bankruptcy, with Collins Barrow Toronto Limited being appointed as Trustee in Bankruptcy.

References

1. ^ JEFF BOLICHOWSKI. "No grant cash yet, embattled game designer says". St. Catharines Standard. Archived from the original on April 5, 2020. Retrieved December 21, 2011.
2. "Silicon Knights staff now fewer than 5 – Report | GamesIndustry International". Gamesindustry.biz. October 26, 2012. Retrieved November 19, 2012.
3. "What Went Wrong With Silicon Knights' X-Men: Destiny?". Kotaku.com. October 26, 2012. Retrieved November 19, 2012.
4. Crecente, Brian (May 9, 2013). "Silicon Knights unloads property, closes office, continues battle with Epic Games". Polygon. Vox Media. Retrieved May 10, 2013.
5. ^ Totilo, Stephen (May 30, 2012). "Epic Says Epic Has Won Lawsuit Battle With Silicon Knights [UPDATE: Epic Awarded $4.45 Million]". Kotaku. Gawker Media. Archived from the original on August 24, 2016. Retrieved August 24, 2016.
6. "Baker Tilly Canada | Chartered Professional Accountants". www.bakertilly.ca.
7. "Feature: The Making Of Metal Gear Solid: The Twin Snakes". Nintendo Life. December 27, 2016.
8. Shepherd, Jack. "News: Cancelled Silicon Knights games detailed". ComputerAndVideoGames.com. Retrieved March 15, 2021.
9. "Silicon Knights' cancelled games laid bare • News •". Eurogamer.net. December 12, 2012. Retrieved March 15, 2021.
10. "Epic Wins Advantage in Too Human Lawsuit". Escapist Magazine. December 27, 2011. Archived from the original on March 14, 2012. Retrieved December 31, 2011.
11. "Hamilton poised to become leader in interactive digital media". McMaster Daily News. Archived from the original on September 26, 2011. Retrieved December 19, 2011.
12. Crecente, Brian (July 19, 2007). "Silicon Knights: Epic Sabotaged Us". Kotaku. Archived from the original on September 16, 2009. Retrieved November 15, 2017.
13. Carless, Simon (July 19, 2007). "Breaking: Silicon Knights Files Lawsuit Against Epic". Gamasutra. UBM TechWeb. Archived from the original on September 24, 2016. Retrieved August 24, 2016.
14. ^ Brightman, James (August 9, 2007). "Mark Rein: Epic Games Did Nothing Wrong; Silicon Knights is Stealing". GameDaily. Archived from the original on November 22, 2007. Retrieved November 9, 2017.
15. Sinclair, Brendan (August 9, 2007). "Epic Games countersues Silicon Knights". GameSpot. Archived from the original on September 28, 2017. Retrieved September 28, 2017.
16. Graft, Kris (October 31, 2007). "Epic's Motion to Dismiss UE3 Case Denied". Next Generation. Archived from the original on November 3, 2007. Retrieved December 20, 2017.
17. ^ Nunneley, Stephany (November 9, 2012). "Epic judgment doubled, Silicon Knights ordered to pay over $9 million". VG247. Videogaming247. Archived from the original on August 8, 2016. Retrieved August 24, 2016.
18. Sawyer, D. (November 7, 2012). "Silicon Knights, Inc. v. Epic Games, Inc". Justia. Archived from the original on September 4, 2016. Retrieved August 24, 2016.
19. McCaffrey, Ryan (May 7, 2019). "Denis Dyack: Working on Eternal Darkness, Metal Gear, & More! - IGN Unfiltered #42". YouTube. Archived from the original on December 22, 2021. Retrieved October 10, 2019.
20. "OMDC News Release". Archived from the original on October 18, 2013. Retrieved April 15, 2010.
21. "Welland Tribune: Silicon Knights get $4-million boost". Archived from the original on April 18, 2010. Retrieved April 15, 2010.
22. Collins Barrow Archived April 10, 2016, at the Wayback Machine Trustee In Bankruptcy Of Silicon Knights Inc.

External links

• Official website via Internet Archive
• Silicon Knights profile on MobyGames

• Silicon Knights
• Companies based in St. Catharines
• Canadian companies established in 1992
• Canadian companies disestablished in 2014
• Video game companies established in 1992
• Video game companies disestablished in 2014
• Defunct video game companies of Canada
• Video game controversies
• Video game development companies
• Defunct companies of Ontario
• 1992 establishments in Ontario
• 2014 disestablishments in Ontario
• Companies that have filed for bankruptcy in Canada