Bethesda has been handed another setback in its ongoing battle with Interplay over the development of Fallout Online. Bethesda was disappointed in September when a temporary injunction was denied. The company filed an appeal which has now also been rejected.
A point of contention for Bethesda is Interplay's financial stability, and whether the company would be able to pay any applicable damages should it prove successful in halting the MMO's production.
The source of the dispute is in the particulars of the $5.75 million deal for the Fallout license in April 2007. Bethesda agreed that the rights for an online Fallout game would remain with Interplay on the condition that "full scale development" should start with at least $30 million in funding within two years.
Read the full report at GamesIndustry.biz.