Bethesda’s own video gaming company now finds itself in a high-profile lawsuit with game developer Interplay Entertainment over a trademark dispute.

Interplay created the original Fallout computer game in 1997 and a sequel to the game the following year.  Critics praised the games as innovative and creative, citing their setting, a post-apocalyptic universe, as an example.

However, Interplay faced years of losses and eventually went bankrupt.  Bethesda Softworks bought the complete rights to the Fallout franchise in 2007 for $5.75 million and released the incredibly successful Fallout 3 for PC, Xbox 360 and PlayStation 3 in 2008.  Fallout 3 allows gamers to explore the alternate universe of a hellish Bethesda landscape charred black and gray by nuclear blasts.

Bethesda’s lawsuit revolves around the fact that Interplay continues to sell the original Fallout games and is continuing to work on Fallout MMORPG, a proposed online multiplayer game based on the gaming series.

Interplay claims its agreement with Bethesda permits the company to sell older versions of the game and develop its new project, while Bethesda states that Interplay hasn’t complied with specified conditions set in their deal regarding those two actions.  Specifically, Bethesda is claiming that Interplay didn’t obtain its approval for the packaging of the older games and did not begin full-scale development of the MMORPG within 24 months of the agreement, both stipulations that are clearly laid out in the contract between the two companies.

Nevertheless, an initial trial denied Bethesda’s injunction of Interplay’s production of older Fallout games.  Bethesda accused Interplay of trademark infringement, breach of contract and unfair competition, while Interplay is now looking to obtain roughly $10,000 from Bethesda in legal fees.

“The court has declined to decide the issues at a preliminary hearing and determined that the parties should maintain the current status quo pending a trial of the case in 2010,” a Bethesda Softworks spokesperson said in a recent statement.  “We are confident that we will prevail on our claims against Interplay.”