Bethesda sought, on appeal, to overturn the decision handed down earlier this month to allow Interplay to continue development work on Fallout Online.

The judge denied the appeal, therefore granting Interplay the right to continue their work, at least for now.

For Fallout franchise fans this unfortunately does not give green lights the whole way for the emergence of Fallout Online.

There is still plenty of hurdles to overcome for Interplay, the least of which being their dubious financial situation.

In the Interplay vs Bethesda story so far, here is what we have:

• Interplay announce their intention to create new MMO title (despite having laid off several employees)
• New IP is registered by Interplay as 'Fallout Online' after they obtain license from Bethesda.
• Bethesda believe Interplay's 'financial inability' may cause irreparable damage to them.
• Massive legal battles ensue.

Yet to be determined, and still of large concern to Interplay and Fallout Online's future is:

1. Parties must settle their licensing relationships
2. Come to a resolution regarding release of Fallout Online
3. Without the express permission of Bethesda (at this point in time) Interplay will be unable to release Fallout Online.

Game development sure was a lot simpler with a few black and orange dots being shot down by a space ship in the arcade.

Keep your eye on http://www.fallout-on-line.com/ for any emerging details on Fallout Online.

Via [Joystiq]

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