I think they went all Cease & Desist-bullying only after the Alien Wasteland developer allegedly asked to be paid for changing the name. A knee-jerk reaction to being unexpectedly squeezed for money.
I'm not saying they were right to contact him to begin with, it seems a little petty. Still, it is all about getting the best representation on Steam and there is a slight chance a low budget game with the same'ish name can sour the first impressions of an uninformed consumer. There are SO many people who go by "word of mouth" even when they don't understand what they are being told, surely there have been a few attention deficit Steam users going "Wasteland? From the store? It looks like crap, I'm skipping it".
I hope people understand that you don't get to trademark "words". A lot more goes into it than just the word itself: It is the type of product (video game in this case), the marketing design material (logo/font style, posters), the sales pitch (how the product is described). You don't own the word, you own a trademark.
Owning a trademark gives you a head start when you take someone else to court for leeching off of your trademark. You can show the judge that presenting a game with the prominent display of the word "Wasteland" in a particular styling is important to your business and it is a result of the investments and hard work you put into it. The judge can then decide whether or not the defendant appears to have been taking advantage of your product's or company's reputation by imitating your trademark, and whether or not this has hurt your business.
I doubt inXile could have won a court case against Alien Wasteland, but court cases are very costly and time consuming. One guy can't take the risk going up against a company with lawyers, even when the law suit is flimsy as hell.
Post edited July 11, 2016 by Sufyan