Traun said:
Here's the short story of it if you don't know.
1.Interplay is making a Fallout MMO.
2.Interplay is nearing bankruptcy.
3.Interplay sell the Fallout licence to Bethesda, the agreement is "We make Fallout MMO, you make Fallout games."
4.Bethesda makes Fallout 3.
5.Bethesda makes millions.
6.Bethesda goes full Kotick and sues Interplay to take away the rights for the MMO.
7.Court says no.
8.Bethesda know Interplay are standing on their last leg and is suing them again hoping to drain their resources in court battle.
Almost.
Interplay retained the rights to the MMO... but only under certain conditions. They had to secure funding and begin development by a certain date, and then they had to
release by a certain date as well.
They allegedly got funding and began development right on the edge of that deadline, but the lack of any notable progress (and further financial woes) seem to indicate that it was not a good-faith attempt to begin development. While it technically fulfills the letter of the contract, it could be argued that it was simply a stall tactic.
Intellectual property laws can get tricky like that. Just look at the practice of patent trolling, in which a company patents something... but then doesn't use it, choosing instead to just camp on the patent until someone unknowingly infringes. (See: Tim Langdell and "edge") All they
technically have to do is crank out some cheezy product featuring the patented/trademarked bits in order to keep up the appearance. Then they just wait for someone else to spend real time and money making a product, and then pounce from the shadows.
It looks like that's the game Interplay has been trying. They make a hasty deal that, on paper, meets the conditions of the contract in the barest technical sense. That buys them more time, which they then use to get further into financial trouble. Bethesda is looking at this and saying, "Come on. They're not making any good-faith effort on this, and we feel they're in violation of the purpose of our original agreement."