South Park Studios has filed an objection to THQ's proposed sale of South Park: The Stick of Truth.

According to the studio, the deal it entered into with the now-bankrupt publisher does not allow third parties to use the IP.

Even if South Park Studios did agree to allow a different company to develop the game, THQ would have to pay it at least US$2.28 million (AU$2.16 million) – the total amount it has defaulted on paying South Park up to this point.

South Park Studios "also reserves the right to exercise its option to acquire from THQ all elements of the games and related products under the Deal Memo" at THQ’s cost, states the objection.

According to Joystiq, on January 21 THQ asked the court to overrule the objection, but is now working toward a resolution with South Park Studios.

THQ is apparently arguing that the license is exclusive and therefore transferable.

The THQ auction began today and closes on January 25. EA, Warner Bros., and Double Fine have indicated their interest in various THQ properties.

It is rumoured that Sega is leading the bidding on THQ subsidiary Relic Entertainment, while Dead Island publisher Koch Media is in front regarding Volition.

DDInvesting claims Ubisoft is “a contending bidder for several THQ assets”.