SEPT. 11, 2009 • Bethesda Softworks filed a lawsuit against Interplay Productions alleging the latter for copyright infringement. When Bethesda purchased the Fallout franchise in 2007, it licensed back the rights to sell prior Fallout games to Interplay, as well as the right to develop a Fallout MMO. Bethesda claims that under the agreement Interplay failed to submit all packaging, advertising and promotional materials for any prior Fallout titles Interplay intended to sell, as the publisher was obligated to do. Bethesda also claims that Interplay had no right to license online distribution of those older titles to GameTap or GOG.com, as was done. Furthermore, Bethesda asked the court to find Interplay in breach of contract for allegedly failing to go into full production on the Fallout MMO by April 2009 as agreed to, and for the court to cancel Interplay’s Fallout license.

Impact: The Fallout franchise was originally developed in the late 1990s by Black Isle Studios, a division of Interplay.  At the time Interplay was an up-and-coming publisher going public on NASDAQ.  However, Interplay struggled and was delisted.  Black Isle Studios was closed in 2003.  In 2006, Interplay announced it would try and make a comeback driven largely by a Fallout MMOG.  However, beyond the MMOG, Interplay did not have the resources to focus on the Fallout franchise and Bethesda took over development and publishing of Fallout 3 and it became a hit upon its release in 2008.  The Fallout franchise has become much more valuable with the success of Fallout 3.  However, it appears that Interplay does not have the financial means to develop a high-end MMO.  The MMO was the main reason that Bethesda gave Interplay a license so it is no surprise that they are now asking to cancel that license.