According to some red tape paperwork from Interplay, Bethesda "intends to terminate" the Fallout license agreement over failure to kick-start development.
Interplay "adamantly disputes" the claim from Bethesda that they failed to start work on the Fallout MMOG and fell short of funding. If they lose the license, damages "are unknown".
"Interplay recently received notice that Bethesda Softworks, LLC ("Bethesda") intends to terminate the trademark license agreement between Bethesda and Interplay which was entered into April 4, 2007 for the development of FALLOUT MMOG," read Interplay's paperwork, under the 'Legal proceedings' header.
"Despite the fact that no formal action is currently pending, Bethesda claims that Interplay is in breach of the trademark license agreement for failure to commence full scale development of same by April 4, 2009 and to secure certain funding for the MMOG."
"Interplay adamantly disputes these claims. Although the potential damages are currently unknown, if Bethesda ultimately prevails and cancels the trademark license agreement, Interplay would lose its license back of the "Fallout" MMOG and any damages resulting therefrom are unknown at this time," concludes the piece.
The Fallout MMO was expected to be a collaboration between Interplay and Masthead, developer of their own sci-fi MMO called Earthrise.
Recently Fallout co-creator Jason Anderson left 'Project V13' saying, "The future of the - well, I don't know if I want to go there." He left for inXile which he claims "was a more stable opportunity" than sticking with Fallout Online.
Are hopes for an enjoyable online wasteland dashed?