The commercial rights to Duke Nukem were in dispute when Gearbox became embroiled in a lawsuit with 3D Realms and Interceptor Entertainment over the intellectual property. That fight is over, with Gearbox retaining the rights to the franchise.
To recap, 3D Realms sold the rights to Duke Nukem to Gearbox, which completed the development of Duke Nukem Forever and released it.
Later, Interceptor Entertainment bought 3D Realms and teased the development of Duke Nukem Mass Destruction. This lead to Gearbox suing 3D Realms and Interceptor Entertainment. The development of the game was suspended as a result of the lawsuit.
Gearbox, 3D Realms and Interceptor released a joint statement today announcing that the companies had come to a resolution and that the lawsuit is over.
"We never intended to cause any harm to Gearbox or Duke, which is why we immediately ceased development after Gearbox reached out," said 3D Realms' Mike Nielsen.
"To secure the future of Duke, 3D Realms has agreed with Gearbox that a single home serves the IP best. And as big Duke fans, we're excited to see what Gearbox has in store for the 'King.' As for our own games, we're eager to complete development of the 'Bombshell' game and get it in the hands of our fans."
Gearbox retains the full rights to the Duke Nukem franchise. It's hard to say what will happen to the series from here, but there's a good chance the studio intends to keep the series alive because despite the fact that the last game didn't do very well, Duke Nukem's still a popular character.