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http://www.gamasutra.com/php-bin/news_index.php?story=14759
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The thing is, there's nothing inherently illegal about that. it's just that quite often the base technology developer will choose not to compete with their licensees, or, alternately, nobody will license the technology if they're going to be at a competitive disadvantage when employing it. This seems like a great example of the potential consequences of Epic dominating the engine-licensing business at the moment. Even if you don't like the idea of competing with Epic's games due to the advantage they have of being developed in parallel to the technology, you don't have much of a choice.
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