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Bethsoft Sues Interplay for Breach of Fallout Contract

Posted September 14, 2009 by David Radd

A storm started brewing earlier this year, when Bethsoft informed Interplay that it would terminate their license agreement if the latter did not demonstrate that they were working on a Fallout MMO. According to Gamasutra, the other shoe dropped recently and legal documents were filed to null the license agreement between Bethsoft and Interplay.

When Interplay sold the Fallout license to Bethsoft in April 2007, it retained the rights to develop an MMO based on the franchise if it started full scale development within two years. The contract also stated that Interplay must receive $30 million to fund the Fallout MMO and launch the game within four years of the original agreement.

Additionally, Bethsoft is claiming trademark infringement with regards to the sale of catalog Fallout titles. They claim that Interplay did not submit materials related to these games to Bethsoft before putting them out on retail chains and digital distribution sites like Steam and GOG.com. Because of Interplay's actions, Bethsoft says that consumers have become confused over what company made which Fallout games causing the Maryland developer "immediate, substantial, and irreparable harm."

The charges against Interplay by Bethsoft amount to unfair competition, trademark infringement and two counts of breach of contract. Bethsoft is seeking an injunction against the sale of the older Fallout titles and a termination of the license agreement, along with damages and legal fees.

David Radd has worked as a gaming journalist since 2004 at sites such as GamerFeed, Gigex and GameDaily Biz.