Hm, found some post on the issue with a link to a relevant Youtube video.
I've been a long time fan of Star Control. I've been watching things for a while. If you check out YouTuber Law on YouTube, you can get a really good take. Not a lawyer, so my layperson's understanding:
The creators sold the rights for Star Control's trade mark, marketing and distribution rights on the condition that if the game fails to generate $1,000 in revenue then all rights revert to them. The distributing company eventually stopped selling the game. The creators presumed the rights reverted to them, but never got a declaratory judgement to legally cover that they did. The defunct rights were eventually sold through companies until it wound up with Atari, who sold the trade mark rights to Stardock. Stardock believes that the contract for the copywrite is still in effect; thus, they own the franchise.
Stardock wanted to make a game and began doing so. It's he said/she said at this point: Creators says they were in discussions with Stardock who wanted to by rights to the copywrite to make a game, but ultimately the creators said, "No, we want to make a sequel." Stardock says they told the creators they have the rights to make the game and wanted their blessings/input. There appears to be evidence that Stardock's version of events have changed over time and misrepresents events.
Whatever the case, Stardock decided to go ahead with the idea that the most the creators could own is the original characters, artwork and music. So, they made a game with the core idea but with alternate versions of the characters, art and music. The DMCA takedown was issued because it appears that Stardock then decided to use some original characters in the game, to which the original creators claim copywrite.
The most recent court ruling was less than stellar for Stardock, who used very poor legal arguments:
https://www.youtube.com/watch?v=Ieb1ajwwUFo There is also a response which includes what Sabin_Stargem mentioned above.
Good summary! One small correction/amplification:
> Stardock wanted to make a game and began doing so. It's he said/she said at this point
The filing in the Leonard French video indicates that the court has access to correspondence between Wardell and Reiche/Ford from this period, in which Wardell explicitly acknowledges Reiche/Ford's claims to the SC1/2 IP and says that he accepts those claims as valid and would not incorporate such IP into his new game without a license from them. (Which Reiche/Ford refused to grant.)
Much later on, Stardock released DLC content packs for Star Control: Origins that incorporated some of those very IP elements Wardell acknowledged Reiche/Ford's rights to into that game. Example:
- Star Control: Origins Arilou Content Pack:
https://steamdb.info/app/899550/
- The Arilou alien race from Star Control and Star Control 2:
http://wiki.uqm.stack.nl/Arilou_Lalee%27lay So if Wardell is saying now that he has never accepted Reiche and Ford's claimed rights to the SC1/2 IP, and the court has written evidence that at one point in the past he absolutely did acknowledge those rights, that would put the dispute outside the "he said/she said" zone.