The Silver Lining project: copyright gone wrong
tsl-game.com
tsl-game.com
They didn't copy or reverse-engineer stuff. They didn't abuse any existing copyrighted works but instead invested a lot in creating their own non-commercial sequel of the game.
They made a completely new game, with their own storyline and engine. The only reference to the King's Quest is that made it a sequel to the original series. Oh, they even dropped the name King's Quest almost a decade ago. In essence, the new game is an original copyrighted work by them.
There's something horribly wrong with that.
You shouldn't be able to "own" characters or a plot or a storyline: you should be able to own actual works based on a set of characters, the plot, or the storyline.
Merely continuing from where the original ended should in no way imply a derivation of works.
The bigger issue in my mind is the license. It is generally the case that if someone gives you a license to property, and you spend money in reliance on that license in a reasonable and expected manner, then the license becomes irrevocable. If Vivendi granted Phoenix a license, and Phoenix spent money developing the game, I can't see how the new property owner Activision can just retract the license.
It's pretty insane to think how much work went into both of these games, and that they will never see the light of day.