The company that employs “Cliffy B” and made Gears of War for the Xbox 360, along with the uber-popular Unreal series, was sued earlier this year by Silicon Knights for breach of contract.

Yeah, boring right? Well, when you delve into the details, as Sarcastic Gamer did in Episode 3 of the podcast, a bunch of interesting stuff floats to the top.

Find out the what and why, after the jump!

Silicon Knights, the makers of the upcoming actioner “Too Human,” used a verision of the touted “Unreal Engine” to make Too Human. Silicon Knights alleged that Epic witheld timely updates to the Unreal Engine code that caused Silicon Knights millions in time delays. Eventually, Silicon Knights alleges that they ended up revising the Unreal Engine into, what they have called, a new game development engine. Silicon Knights even alleged that Epic witheld the code so that Epic’s Gears of War, which was a showcase for the Unreal Engine would have a competitive advantage.

Epic, in turn, filed a counter claim alleging that Silicon Knights essentially infringed on their Unreal Engine when Silicon Knights sought to create and brand their new engine. Epic claims that the the “new” Silicon Knights Engine was and is basically the Unreal Engine.

This whole thing is ongoing. Who knows what eventually will happen. My guess is that the parties will settle and part of the compromise will include either a new Silicon Knights game engine solely in the hands of SK, or that Epic pays out a boat load of cash and seals the records.

Who knows? That’s why Epic getting sued checks in at number 50 on Sarcastic Gamer’s Top 100 Moments of 2007!

We’re halfway through boys and girls. Wanna see what you’ve missed? Click here for the rest of Sarcastic Gamer’s Top 100 Gaming Moments from 2007, all in one place!