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To sum it up, Interplay is accused of two counts of breach of contract (regarding Fallout Online and the previous Fallout games), trademark infringement and unfair competition. Bethesda demands that Interplay stop manufacturing and distributing the original Fallout games, as well as pay for damages and legal fees, and asks for the trademark agreement to be declared terminated."
Interplay sold the Fallout property to Bethesda in 2007 but licensed the rights to do a Fallout MMO. The deal stated, however, that full scale development had to have commenced by April 4th 2009 and that certain funding ($30 million) had to have been secured.
Bethesda accused Interplay of trademark infringement, claiming that while Interplay was permitted to sell pre-existing Fallout games, it was required to submit to Bethesda all relevant packaging, advertising, and promotional material prior to bringing the catalog titles to market. Bethesda claimed that Interplay never sought pre-approval for those materials. The plaintiff said because of the alleged trademark infringement, consumers have become confused between the makers of the pre-existing Fallout games and Bethesda's more recent Fallout 3. One example is Interplays bundle titled: "Fallout Trilogy" which bundles Fallout 1, Fallout 2 and Fallout: Tactics.
Interplay has filed a counter-suit...
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Interplay’s counter-suit alleges that Bethesda interfered with Interplay’s business, including distribution of the previously released FALLOUT ®, FALLOUT® 2, and FALLOUT® Tactics games, by attempting to terminate Interplay’s distribution rights, among other acts. Interplay asks the Court to decide whether Bethesda’s attempt to terminate Interplay’s rights under the Asset Purchase Agreement results in nullification of the entire contract such that the Parties should be returned to the status quo under their former Exclusive Licensing Agreement. If the Exclusive Licensing Agreement is restored, Bethesda may owe royalties based upon sales of its FALLOUT ® 3 title. Interplay also seeks a declaration from the Court that it has not infringed upon the FALLOUT® mark and that it has satisfied the terms of a Trademark Licensing Agreement it signed with Bethesda related to Interplay’s production of a massively-multiplayer online game.
For its part, Bethesda seeks to cancel the Trademark License Agreement, which conditionally allows Interplay to use the FALLOUT ® brand in conjunction with its currently-in-production massively multiplayer online game. Bethesda claims that Interplay breached the trademark license agreement because it allegedly failed to commence full scale development and satisfy a funding requirement within a specified time frame. Bethesda also seeks to terminate Interplay’s rights with respect to Interplay’s distribution of the FALLOUT® back catalog of games. Interplay disputes these allegations. Although the potential damages are currently unknown, if Bethesda ultimately prevails, Bethesda could obtain a damages award and cancel the trademark license agreement. Interplay could lose its license to use the FALLOUT® brand with respect to its massively multiplayer online game, and also its right to distribute the pre-existing FALLOUT® titles."
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In my opinion this is a bunch of bullshit that Bethesda is trying to basically snuff out what little is left of Interplay... money grubbing bastards want every last dime. The examples Bethesda cites are hardly affecting their sales and are more of a minor nuisance, but to terminate the entire agreement? Hell no. The WHOLE REASON Interplay sold the rights to the Fallout brand was to spur up sales on their old titles and gain funding for their MMO. As many of you may recall Interplay has almost no money coming in since "Project Van Buren" was canceled years ago. (The original Fallout 3, by interplay)
If Bethesda wins it basically gives them the right to the entire fallout franchise including the MMO. It awards them damages as well as legal fees and would inevitably put Interplay out of business once and for all.
HOWEVER (and I would prefer greatly...)
If Interplay defends its agreement AND wins the countersuit they will not only be allowed to continue with their project, they will also be awarded a nice chunk of money from Fallout 3 sales. I would love to see this happen, since the legal fees alone are going to be enough to fuck up all of Interplays projects and plans.
Either way its just another example of a large money-grubbing empire (BETHESDA) trying to bully out the mom and pop shop. Bethesda as a gaming company is very talented but they are just pieces of shit and lost my support. Go Interplay!
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-edited for spelling, included link to NMA.