Interplay recently received notice that Bethesda Softworks, LLC("Bethesda") intends to terminate the trademark license agreement betweenBethesda and Interplay which was entered into April 4, 2007 for the developmentof FALLOUT MMOG. Despite the fact that no formal action is currently pending,Bethesda claims that Interplay is in breach of the trademark license agreementfor failure to commence fill scale development of same by April 4, 2009 and tosecure certain funding for the MMOG. Interplay adamantly disputes these claims.Although the potential damages are currently unknown, if Bethesda ultimatelyprevails and cancels the trademark license agreement, Interplay would lose itslicense back of the "Fallout" MMOG and any damages resulting therefrom areunknown at this time.
