For the past several months, publishers Interplay and Bethesda Softworks have been engaging in a court battle over what Interplay can do with the Fallout game licence. Now fan site Duck and Cover is reporting that Bethesda Softworks has decided to drop their appeal of the lawsuit against Interplay.

Just a recap: Bethesda bought the rights to the Fallout game franchise from Interplay several years ago but gave Interplay a license to develop a MMO based on the property. However in 2009, Bethesda filed a lawsuit against Interplay claiming Interplay had failed to get Bethesda's approval for the marketing materials of a re-release of Interplay's old Fallout games. They also sought to terminate Interplay's Fallout MMO plans.

If Duck and Cover's info is true, Bethesda has now decided to drop the lawsuit which likely means that the Fallout MMO game (also known as Project V13) can indeed be developed. Indeed Interplay has already released some concept artwork for the game and some possible screenshots have been leaked as well. We have emailed Bethesda's PR folks for comment.

[Via Blue's News]