Remember when games were entertainment, you know, before they got all mass-market and therefore massively¬†profitable? No, we don’t either.

The latest legal case to be settled is that Bethesda Softworks, subsidiary of ZeniMax Media has reached a settlement in the 2009 lawsuit filed against Interplay Entertainment Corporation, seeking cancellation of the license granted to Interplay to develop a massively multiplayer online game (MMO) based on the Fallout brand.

So the official statement goes: “Bethesda maintained in its complaint that Interplay had failed to meet the conditions for the license and the license was therefore of no continuing validity.

“Under the terms of the settlement, the license granted to Interplay to develop the Fallout MMO is null and void, and all rights granted to Interplay to develop a Fallout MMO revert back to Bethesda, effective immediately. Interplay has no ongoing right to use the Fallout brand or any Fallout intellectual property for any game development. ZeniMax will pay Interplay $2 million as consideration in the settlement, each party will bear its own costs of the litigation, and Bethesda will continue to own all Fallout intellectual property rights.

“Interplay will be permitted to continue to sell the original Fallout Tactics, Fallout and Fallout 2 PC games through December 2013, after which time all rights to market those games revert to and become the sole property of Bethesda. Under the original agreement pursuant to which Bethesda had acquired the Fallout property, Interplay was granted certain merchandising rights to sell those original Fallout games, but those merchandising rights will now expire on December 31, 2013.”

Robert Altman, Chairman and CEO of ZeniMax said: ¬†”While we strongly believe in the merits of our suits, we are pleased to avoid the distraction and expense of litigation while completely resolving all claims to the Fallout IP. Fallout is an important property of ZeniMax and we are now able to develop future Fallout titles for our fans without third party involvement or the overhang of others’ legal claims.”

The lawsuit against Interplay arose after Bethesda Softworks acquired all Fallout intellectual property rights from Interplay in April 2007, and conditionally licensed back to Interplay certain trademark rights to make a Fallout MMO, provided Interplay secured $30 million in financing for the MMO and commenced full scale development of the game by April 2009. Bethesda alleged in its complaint that Interplay failed to meet either condition of the license back agreement but refused to relinquish its license and insisted it would develop a Fallout MMO. Bethesda filed suit to declare the license void.

So there you go, expect an Bethesda led Fallout MMO to be announced any time soon then…