A small gaming software company called Mythic Entertainment has filed a lawsuit against Microsoft, accusing the company of illegally using its trademark. The dispute is the latest manifestation of the growing competition in the market for massively multiplayer online games.

The conflict was sparked by a new Microsoft game called Mythica. Mythic's lawsuit claims that the name damages the plaintiff's brand: "Because of the similarity in name, consumers confuse Microsoft's products and services with what our company offers."

Mythic filed its lawsuit in U.S. District Court in Alexandria, Virginia, on Nov. 12. The parties have since tried to reach an out-of-court settlement, but talks broke down last week, Mythic President Marc Jacobs said. "We're going to fight for our name," Jacobs said. "First and foremost, we want to make sure our brand isn't confused with Microsoft products." A Microsoft spokesman said the company is currently "reviewing the plaintiff's claims and understanding the allegations."

By releasing new games, particularly Mythica, Bill Gates' corporation hopes to win back a share of the market for massively multiplayer games, which is controlled by a handful of manufacturers such as Mythic, Sony, Electronic Arts, and Blizzard Entertainment (a division of Vivendi Universal). Microsoft's previous attempts in this direction have not been successful - two versions of the Asheron's Call multiplayer games have not gained much popularity.

The new Mythica software was announced at a game show in April 2003, and is scheduled to hit the market in 2004. The game's theme is based on Scandinavian mythology. Mythic already has a popular multiplayer game called Dark Age of Camelot, which draws on Scandinavian and Celtic folklore. Mythic's lawsuit claims that elements of Microsoft's product, including some plots and terms, are borrowed from Dark Age.

Massively multiplayer role-playing games like Dark Age of Camelot allow a very large number of players connected to the Internet to simultaneously participate in a cooperative action. In the world of video games, this category of programs is considered only a relatively small niche, which, however, can bring in significant revenue - numerous fans spend a lot of money on monthly subscriptions, as well as on software updates.

For Mythic, the stakes in its battle with Microsoft are high: Dark Age of Camelot currently has about 250,000 online subscribers, each of whom pays between $10.95 and $12.95 a month to play the game. The latest update to the software, released in October, sold for about $30. (WSJ, 12/22/2003, Alexander Safin)

Mythic defends itself against Microsoft