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updated 8/6/2009 8:16:50 PM ET 2009-08-07T00:16:50

Attorneys for gaming giant Activision notified a court Wednesday that they reached a settlement over the release of "Brutal Legend," a video game starring Jack Black.

Activision had sued San Francisco-based developer Double Fine Productions to try to stop the October release of "Brutal Legend" by rival Electronic Arts. Activision claimed it still owned the rights to the game and that Double Fine failed to deliver it on time.

Double Fine countersued, claiming Activision terminated its agreement to release the heavy-metal inspired game after a failed attempt to make it part of the company's lucrative "Guitar Hero" franchise. Double Fine claimed Activision then moved to stop the release of "Brutal Legend" to try to protect "Guitar Hero."

"Brutal Legend" features Black as band roadie transported to a mythical ancient world to fight evil.

Los Angeles Superior Court spokeswoman Vania Stuelp said attorneys for Activision notified the court of the settlement agreement with Double Fine. Attorneys for the companies did not immediately return calls seeking comment on Thursday.

A hearing on a proposed injunction scheduled for Thursday morning was canceled. Activision's attorneys were set to argue why the game shouldn't be released.

Superior Court Judge Craig Karlan told attorneys last week that he was inclined to deny Activision's request and allow the game to be released on time.

Electronic Arts has spent millions promoting the game, which has been featured on gaming Web sites and prominently displayed at the Electronic Entertainment Expo, known as E3.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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