ceeker: I hope Lionhead still have it, because I'd love to see a sequel to this. Or else a standalone program based solely on making machinima, I'd have hours of fun with that.
LIonhead still has the IP rights, but they might be limited by the deal they made with Activision for publication.
It's like Marvel comics.They own the IP for Spiderman and X Men, but Marvel Studios cannot make a movie from them because the film rights are still owned by Sony and Fox because by the contract Marvel signed with those studios. When the contract expieres, Marvel regains the film rights. Until then, unless Marvel buys out the contract, only Sony and Fox can do a live action Spidey or X Men film.