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Looking at the article some more, I think I have a better understanding now:

In 2010, Gearbox buys some subset of the Duke Nukem IP from 3DR.  There seems to be a disagreement over who got what from this:

• Gearbox believes they got full game rights, while 3DR kept full tv/movie rights.
• 3DR believes they kept all rights to the old games, and Gearbox got all rights to new stuff.

In 2013, 3DR -- believing they still own the rights to Duke3D -- contracts TerminX for HttK.

In 2014, Gearbox sues 3DR.  They settle out of court.  We don't know the terms of the settlement, but 3DR's letter to TerminX suggests that Gearbox got ALL rights -- new and old -- to Duke Nukem.

So now there are two interpretations of whether 3DR's contract with TerminX has any validity:

• From 3DR's perspective, they owned the rights to Duke3D when they contracted TerminX, but then gave them away in the settlement, transferring their contract to Gearbox in the process.  In this interpretation, TerminX has every right to continue his work, and Gearbox has no right to retroactively change the terms of the contract they inheritted.
• From Gearbox's perspective, 3DR did not own the rights to Duke3D when 3DR contracted TerminX, and the settlement merely re-affirmed Gearbox's prior rights to Duke3D.  In this interpretation, in order for TerminX to continue his work he needs to agree to a new contract with Gearbox.

So it re-opens the original question of who had which rights before the settlement.  Either way it still sounds like Gearbox is jerking TerminX around.

I also wouldn't be to sure that eduke32 is totally safe. Gearbox owns Duke Nukem in full including Duke 3D and they have money and lawyers and ways to get what they want. Plus the new Duke 3D Gearbox is working on is going to make old con and map files not work with it. There will be a new con and map file layout that will cancel out existing mods and only work for new.

The source code to Duke3Dv1.5 was released under the GPL.  Gearbox can choose not to release future versions under the GPL, but I'm not sure you can just retroactively revoke it from code that's already been released under it.  It doesn't seem like it would make any sense, but I don't think it's ever been tested in court before.

Ken Silverman still seems to own the copyright to the Build engine itself, so at least that part's definitely safe.

EDuke32 is safe.  It uses open source code, and includes no copyrighted game data.  Gearbox's problem is with a version of the game that's going to be sold (complete with the copyrighted game data).  3D Realms hired TerminX to produce this version of the game.

The part that's bullshit is that Gearbox is going after TerminX himself (an independent contractor who's caught in the crossfire), instead of going after 3D Realms (the people actually allegedly infringing on their copyright).  Gearbox is bullying TerminX (who did nothing wrong) to try to avoid a lawsuit with 3D Realms.

Bah!  I'll play the shit out of this if the level design is actually good.

Granted, that's a pretty big "if."

Yeah the build version looking forward to that for sure everything takes years. Honestly its like a mod which is going to be hard for the world to take in and buy. But dedicated fps ppl i'm sure there going to get the build version. I wonder if that is even allowed to come out anymore I haven't heard a thing since that image you posted :s

Yeah Bombshell is not very cool looking imho.

Pretty much no one can just get along and make a Duke they all want there own piece of cake untill there is none left. 3D realms also sold the Shadow Warrior ip I belive to Devolver.

This is a month old already, but I only came across it recently:

http://techraptor.net/content/duke-nukem-dust-up-gearbox-vs-gobeille

Basically, Gearbox contends that a contract TerminX has with 3DRealms is invalid, because they claim 3DR no longer has the rights to Duke3D.  But rather than taking it up with 3DR, Gearbox is threatening TerminX, probably to avoid a legal battle with 3DR since they think TerminX will comply to avoid a lawsuit.  TerminX is calling their bluff, though, and is expecting to go to court.

I kind of know some about this one TerminX is my buddy though you may already know some. They already went after 3DR for the Mass Destruction teaser from the new 3D Realms/Interceptor team they have no need to go after them in this one. They had a site called alloutofgum.com and stuff like that to promote there upcoming game, the game eventually released as Bombshell. They thought they had a lead to making it a new rpg top down Duke game. Turns out they did not (as expected imo) and Gearbox sued them and the lawyer outcome is the Duke IP is best in one companies hands. So 3D Realms has nothing to do with Duke anymore only thing left for Gearbox to prove fraud is the contract for the android Hail to the King collection. Which the eduke32 team have the contract to release that... Gearbox thinks the contract isn't correct it was signed before 3DR lost full rights to Duke by Scott Miller. So you would think that it was valid before the change but somehow Gearbox thinks its a false contract. So 3DR has nothing to do with Duke anymore. All though somehow I think if it was false 3dr is going to pay for it at worst. Duke Ip has ways of creating stuff and crap. Well Eduke32 is a bigger fish in Dukes community.

Yeah I was following this hopefully Tx wins and all goes well. Man I wish there would be a new Duke that was kind of like the new Doom! Did you know that Eduke team released closed info about Gearboxes new Duke game? Its not really a new Duke but an "enhanced" version of Duke 3D featuring a new episode. Sounds kind of cool but they should be working with eduke not going against them :/

Gearbox had some lunch with Tx before this started and even showed him some of what they were preparing for there upcoming Duke project most likely set to release sometime this year for the 20th anniversary of Duke 3D. But when they went to get him to sign an NDA he didn't sign must of been something in there that he did not like. Gearbox says well "your contract is false." Once again a crappy ride for the Duke IP. There is more then all I have said though, and i'm sure even more passed what we are allowed to know. Either way though its going to be interesting to see whatever Gearbox is doing with this new Duke 3D release though I heard somethings like dynamic lighting and other new features in the build engine. Yes I would love a new Turok and Duke made sort of like Doom and Shadow Warrior 13

Yeah I was following this hopefully Tx wins and all goes well. Man I wish there would be a new Duke that was kind of like the new Doom! Did you know that Eduke team released closed info about Gearboxes new Duke game? Its not really a new Duke but an "enhanced" version of Duke 3D featuring a new episode. Sounds kind of cool but they should be working with eduke not going against them :/