A few days ago, we reported that Bethesda was countering Interplay's counter of a motion by Bethesda which sought to limit Interplay's use of the Fallout license to only the name. Bethesda claimed that Interplay, when the original deals were signed selling the Fallout IP to Bethesda, only reserved the right to make a Fallout MMO in name only - the rest of the IP/universe (ie. Supermutants, Brotherhood of Steel, Vaults, etc) could not be used. This motion has been denied, and, as one Interplay insider put it, was "laughed out of court." Here is the full text of the denial:
Motion Hearing held on 1/14/2011 re  PARTIAL MOTION to Dismiss Counts I and II of Interplay's Amended Counterclaim filed by Bethesda Softworks LLC - Argued - "DENIED"; Interplay Entertainment Corporation has until February 7, 2011 within which to Comply with the Court's Ruling on Plaintiff's  Motion to Compel which was entered on 1/13/2011 (Paper No. 97); and the Parties will jointly advise the Court of any discovery disputes by March 1, 2011, all as stated on the record by Chief Judge Deborah K. Chasanow. (FTR - Derro - 2B) (td, Deputy Clerk)
Our source further speculated on what course the court battle might take:
At issue, will likely be the situation of Masthead saying that they are funding 20 million and I2G saying that they are funding 15 million, but it seems the money isn't all available up front but rather through the course of development. Bethesda argues that Interplay needed a 30 million line of credit up front to meet the contract. Interplay is saying, "No. it is just that we have to spend 30 million on the game through the course of development and have in place deals by the due date that will allow for this eventuality."
Be sure to check out the wiki page detailing the background Interplay v. Bethesda battle if you've forgotten what has led up to this point.