Activision fires back in real-world shootout over game.

The video game sparks are flying.

Two months after a game developer accused Activision Inc. of breaking its three-game contract and stealing ideas for a sequel, the Santa Monica-based publisher has counter-sued, leveling its own charges of fraud, breach of contract and copyright infringement.

Activision charges that Sherman Oaks-based Spark Unlimited Inc. misrepresented the background and abilities of employees who developed the game "Call of Duty: Finest Hour." Instead of being the chief creators of the Electronic Arts Inc. hit game "Medal of Honor," they were regular employees, according to the suit, and not up to the task of developing a new franchise.

Furthermore, Activision claims it was forced to pay Spark's legal fees from a lingering lawsuit with EA, accusing Spark employees of stealing trade secrets.

Activision charged that Spark missed all its deadlines for "Call of Duty" and repeatedly deceived Activision about the "lack of progress" and "the calamitous state" of Spark's internal systems, blaming the developer for the six-month delay in the release of the game.

Spark's attorney Steve Smith of Greenberg Glusker LLP called Activision's countersuit "meritless," saying "it's like Goliath arguing that David bullied him into a fight."

In August, Spark sued Activision for $10 million, alleging breach of contract and fraud. The company claimed that Activision bilked it of royalties for "Call of Duty," tried to steal Spark employees and terminated the contract in bad faith.

Activision's suit called Spark's concept presentations for the sequels "incomplete drafts ... so glaringly deficient in every material respect that it appears Spark provided them with the goal of having its proposal rejected."

Activision is also suing Spark for stealing trade secrets, claiming that Spark kept source code and other material from game development. Activision is demanding a jury trial, and seeks actual and punitive damages plus attorneys' fees.