Bethesda's latest salvo in the legal battle against Interplay's Fallout MMO has failed to secure the publisher's position.
Bethesda had filed for a temporary injunction against Interplay, and been denied for failing to show that Interplay's work constituted "irreparable harm" to Bethesda's properties.
Joystiq the publisher then turned to the United States Court of Appeals, suggesting the ruling had "misapplied the law", but failed to secure a new ruling.
Bethesda has reportedly attempted to prove irreparable harm to the Fallout property based on Interplay's disastrously poor financial footing, which could result in a lacklustre release under the Fallout brand.
As matters stand, Interplay is allowed to continue work on the game, but will not be permitted to launch without Bethesda's go ahead.