As reported on Gamespot:

Nearly three years ago, Midway released Psi-Ops: The Mindgate Conspiracy, a third-person stealth-action game and--alongside The Suffering and Roadkill--one of a handful of then-recent original intellectual properties the company had brought to market. However, a Los Angeles County screenwriter is now claiming that the intellectual property wasn't all that original...

Read full story here.

The case is Crawford v. Midway Games Inc., C.D. Cal., Docket 2:07-cv-00967-FMC-JC

We'll start tracking this case and let you know of any significant developments.

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Alas, Sony has agreed to fork over $150M to Immersion to settle their ongoing patent dispute. The deal ends a five year battle including allegations of fraud and misconduct after a jury initially awarded Immersion $82M in damages. With the very real threat of an injunction hanging over its head, Sony settled. Most likely because the PS3 is still not selling as well as Sony has hoped, and Sony can't afford to have its still-selling-like-hotcakes PS2 yanked from store shelves.

Read more from Reuters here.