I doubt Viacom will compromise, unless they see themselves losing in court. Activision is just one of a great many companies they have licensing agreements with. If Activision can weasle out of a contract, then anybody can. To Activision, this is about millions of dollars. To Viacom, this is about hundreds of millions of dollars. ST is not Viacom's only asset. The loss in revenue of the ST games is peanuts compared to chaos they may suffer should they give in to Activision, as other companies that have nothing to do with ST will try to renegociate contracts.
This articles I've read say this lawsuit is almost completely unprecidented. To me, it sounds desparate. Seeing how Activison jumped into the SFC franchise without any considderation of Tadren's existing customers, it would seem that Activision is prone to aggressive and reckless buisness practices.
Since ST is one of Activision's main product lines, this will be a major loss of revenue. For Viacom, the precident of allowing companies to renegotciate this kind of contract is disasterous. Both companies will fight this for as long as they can. Viacom, being the larger company, with so many other assets, can afford to fight this much longer.
That may be the reason that this sort of case is so rare. Even if you are right, you can still lose. Court battles often turn into wars of attrition. There are so many layers of over-worked courts, that one may die of old-age before recieving satisfaction.
Activision has to have a rock solid case if they are to win this fight. Viacom will not settle until they know that they are going to lose repeatedly in court. From what I've read, Viacom feels themselves on solid ground. I see Activision as the one to act in the more risky fashion.
The best case for SFC is if Activision loses quickly and loses big, especially if Activision ends up having to sell the rights to ST in bankruptcy court.
One thing I would dearly love to know: How many people did SFC3 attract compared to the number it alienated? That is, minus the people screaming for their money back.
BTW, another SFB based game will be created. The question is, will it be the beautiful work of Taldren in the next couple of years, or somebody else's in the twenty?