You may remember a while ago that Silicon Knights sued Epic for providing Silicon Knights, and other developers, a model of the Unreal Engine 3 that was essentially broken. A few days ago, Epic made a counterclaim to Silicon Knights stating that they didn’t have merit for their claims, and that it is merely a way to siphon money for Too Human.

“SK’s lawsuit is a pretense. SK does not have any valid claims against Epic. SK filed suit in a bid to renegotiate the License Agreement, in the hope that Epic will prefer that to the burden of responding to discovery and associated adverse publicity.”

Now Silicon Knights is responding to that counter with a counter of their own. Silicon Knights’ Lawyer Cris Holland claims that, bear with me, Epics counterclaim that Silicon Knights’ claims have no merit, isn’t valid and has no merit itself, and that Silicon Knights wont make a profit from Epic, it will simply cover it’s losses.

“We don’t think Epic’s counterclaim has any merit. We believe strongly that our claims in our complaint will prevail and the damages Silicon Knights has suffered in connection with its original complaint are vastly more, millions of dollars more than what Epic claims its damages are in its counterclaim. They’ve set forth $650,000 and our claims will dwarf that substantially.”

Holland also said that Too Human wasn’t at E3 because Silicon Knights will hold their own event(SilCon?) to show the game to the public.