Section 8 developer TimeGate Studios its appeal last year in arbitration over a ruling it pay Southpeak $7.35M in damages as well as the Section 8 IP.
However, U.S. Fifth Circuit Court of Appeals has reversed the appeal, and Timegate must pay the fee once again to Southpeak.
SouthPeak had taken Timegate to court in Texas back in 2009 where an arbiter eventually ruled that Timegate had "wrongfully terminated the contract and therefore were in breach of contract itself." Timegate argued that since the original contract had been with Gamecock, they were within their rights to terminate the contract.
This follows the disastrous release of Aliens: Colonial Marines, with the developer and Gearbox Software trading barbs over who was responsible for the buggy release.