Update: Added comments from Spacetime"s Gary Gattis. 

Austin, Tex.-based Spacetime said that it now fully owns all of the tools, technology and intellectual property from its previous publishing deal with NCsoft for Blackstar.

The studio had been working on the MMO for nearly two years when publisher NCsoft, which agreed to publish the game in 2006, decided to nix the deal in January this year.

Following the cancellation of the NCsoft agreement, Spacetime laid off 12 workers. With the acquisition of the IP, development on the game will continue, but there"s no word yet on a new publisher.

However, Spacetime president and executive producer Gary Gattis told Next-Gen that the studio is actively seeking new partnerships.

"Now that we have the IP locked up, we are talking with several publishers," he said. "Ultimately we want to partner with someone whose vision matches ours about making a great game."

He said that in the meantime, the studio is going "full-speed" with its current staff of 34.

Asked if anyone who was laid off would be returning, he said, "I’d love to work with any of the folks we let go again. They were all top-notch and landed on their feet very quickly. [Having them back] would depend on us solidifying another publishing deal and, of course, their availability."

Cinco Barnes, creative director of Spacetime said in a statement that Blackstar was "specifically designed to be a long-term franchise." The studio also said that it is developing Blackstar Chronicles, described as a single-player fantasy combat game "based on the single-player traditions of Wing Commander and the multiplayer feel of Descent."