Long story short: a group of King's Quest fans has put in about 8 years of work on a non-commercial fan game in the King's Quest line. They worked out an agreement with Vivendi Universal to be able to continue making the game, with a name change to The Silver Lining. Activision now owns the King's Quest IP, and, after several months of talks and negotiations, they have told the group to stop working on the game and to take down their forums. Not wanting legal problems, the group had to comply.
Their webpage gives a fuller account.