A year ago Marvel sued NCsoft Corp. and Cryptic Studios Inc. over "City of Heroes", claiming that the game's character customization function allowed players to create superheroes that closely resemble trade-marked Marvel comic characters (see our post ). More than half of Marvel's claims were dismissed a few months later, including its claim for trade-mark infringement (see our post ).
NCsoft now reports that the parties have reached a settlement which will let 'City of Heroes"? continue unchanged. As a result, the parties (and us) are spared a judicial decision dealing with player-created content.
However, the settlement does not mean that all is hunky-dory between Marvel and NCsoft "? Marvel and Microsoft are pairing up to make an XBOX 360 MMO based on the Marvel superhero universe, which will compete directly with 'City of Heroes"? (as will Sony's recently-announced MMO based on the DC Comics universe).