After the discovery phase of arbitration, Sony has dropped its suit against Hydraulx Entertainment, which claimed the vfx studio stole visual effects from its BATTLE: LOS ANGELES to include in their low budget sci-fi alien invasion flick SKYLINE, writes The Hollywood Reporter. Sony had been told that Hydraulx, while working as a contractor on BATTLE: LOS ANGELES, was misappropriating work from that film for their own film. As a result, Sony tried to stop the release of SKYLINE last November, believing it might overshadow its March release of BATTLE if similar visual effects were in SKYLINE. But SKYLINE distributor Universal wouldn't budge. Now Hydraulx owners and SKYLINE directors Greg and Colin Strause have proven to Sony that no effects from BATTLE were used in their film.

SKYLINE, which cost $10 million, grossed only $65 million worldwide. Sony's BATTLE: LOS ANGELES brought in $36 million in its first weekend.