IP Lawsuits
Interplay was threatened with bankruptcy and sold the full Fallout franchise to Bethesda, but kept the rights to the Fallout MMO through a back license in April 2007 and began work on the MMO later that year. Bethesda Softworks sued Interplay Entertainment for copyright infringement on September 8, 2009, regarding the Fallout Online license and selling of Fallout Trilogy and sought an injunction to stop development of Fallout Online and sales of Fallout Trilogy. Key points that Bethesda were trying to argue is that Interplay did not have the right to sell Fallout Trilogy on the Internet via Steam, Good Old Games or other online services. Bethesda also said that "full scale" development on Fallout Online was not met and that the minimum financing of 30 million of "secured funding" was not met. Interplay launched a counter suit claiming that Bethesda's claims were meritless and that it did have the right to sell Fallout Trilogy via online stores via its contract with Bethesda. Interplay also claimed secure funding had been met and the game was in full scale development by the cut off date. Interplay argued to have the second contract that sold Fallout voided which would result in the first contract that licensed Fallout to come back into effect. This would mean that Fallout would revert back to Interplay. Bethesda would be allowed to make Fallout 5. Bethesda would also have to pay 12% of royalties on Fallout 3, Fallout: New Vegas, Fallout 5 and expansions plus interest on the money owed. On December 10, 2009, Bethesda lost the first injunction.
Bethesda shortly afterword tried a new tactic and fired its first lawyer, replacing him and filing a second injunction, claiming that Bethesda had only back licensed the name Fallout but no content. Interplay has countered showing that the contract states that they must make Fallout Online that has the look and feel of Fallout and that in the event Interplay fails to meet the requirements (30 million minimum secure funding and "full scale" development by X date) that Interplay can still release the MMO but they have to remove all Fallout content. The contract then goes on to list all Fallout content as locations, monsters, settings and lore. Bethesda has known that Interplay would use Fallout elements via internet emails shown in court documents and that the contract was not just for the name. The second injunction by Bethesda was denied on 4 August 2011 by the courts. Bethesda then appealed the denial of their second preliminary injunction. Bethesda then sued Masthead Studios and asked for a restraining order against the company. Bethesda was denied this restraining order before Masthead Studios could call a counter-suit. Bethesda then lost its appeal of the second injunction.
Bethesda then filed motion in limine against Interplay. Interplay then filed a motion in limine against Bethesda the day after. Shortly after, the trial by jury which Bethesda requested on October 26, 2010 was changed to a trial by court because the APA contract (aka the second contract that sold Fallout to Bethesda) stated that all legal matters would be resolved via a trial by court and not a trial by jury. The trial by court began on December 12. In 2012, in a press conference Bethesda revealed that in exchange for 2 million dollars, Interplay gave to them full rights for Fallout Online. Interplay's rights to sell and merchandise Fallout, Fallout 2 and Fallout Tactics: Brotherhood of Steel will expire on December 31, 2013.
Read more about this topic: Fallout Series