Fallout fan site No Mutants Allowed has made a discovery through Interplay's Annual Performance Report that sees Bethesda planning to cancel the right for Interplay to continue their plans to craft a Fallout MMO.

Shacknews claim the company's V13 project is the most likely candidate for the Fallout MMO, and that despite not meeting Bethesda's requirements under legal contract (which gave them two years to meet certain development and financial guidelines to have the game underway), they have indeed been doing something with it, even to a point of hiring Chris Taylor, Fallout lead designer.

Here's an excerpt from the legal proceedings portion of the report:

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

Whether Interplay has grounds to appeal or fight back remains to be seen, and whether or not the project is entirely shelved should Bethesda's legal stipulation come into effect is also an up-in-the-air situation. Poor Fallout.