Spark Unlimited, developer of Call of Duty: Finest Hour, has filed suit against Activision Inc. over the terms of its contract with the publisher. Spark is demanding $10 million in damages over Activision's alleged breach of contract in hiring other developers to work on sequels to the game.

Finest Hour, released in late 2004, was the console edition of the best-selling WWII-based PC shooter. According to Spark, Activision has not only failed to pay promised royalties for the title, but used Spark's proposals for a sequel to develop Call of Duty 2: Big Red One in-house with its own developers, rather than honoring the terms of its alleged deal with Spark to create three console Call of Duty games.

The suit has been filed in Los Angeles County Superior Court. Activision spokespersons stated the company was currently reviewing, and would refrain from commenting at this time.