Funny all the commotion a simple television show can cause...
To play catch up real quick: Microsoft had attempted to renew its trademark license for its fighter "Killer Instinct" trademark this past fall, but ran into some legal issues with Fox, who had aired a program of the same name in 2005. Funny, I remember the game, but I don't think I've ever heard of the show until Fox made a stink about it.
In any event, things are now clear for Microsoft to do whatever it had planned for the trademark, because the two companies have reached an agreement.
The two companies entered into a "Coexistence Agreement" earlier this month.
According to the legal document, "The parties agree to take reasonable measures under the circumstances to market and promote their respective goods and services in such a way as to mitigate any liklihood of confusion between them. In the unlikely event that confusion occurs, the parties agree to notify each other of the confusion in writing, and to take adequate measures to prevent the liklihood of further confusion.
Fox technically remains the owner of the "Killer Instinct" trademark, but you're not going to see a movie from them anytime soon featuring a frost alien, tiger possessed monk, or ancient warrior skeleton, who are all forced to fight in a tournament at the behest of an evil, global corporation. Translation: Microsoft is free to use "Killer Instinct" for their own means.
So whether Microsoft wanted to release a worthy arcade syled port of "Killer Instinct" to Xbox Live, or maybe even do a whole new game after 17 long years, they're set to go. We'll keep you informed with whatever they have planned.