Virginia-based Mythic filed the suit in December, alleging that the forthcoming Microsoft game and pre-release publicity infringed its name and federally-registered trade mark 'Mythic Entertainment'. The term Mythica is so similar to Mythic's registered mark and name as to be likely to cause confusion, mistake or deception among consumers, said the complaint.
The suit also claimed that the proposed release amounted to unfair competition in violation of federal and state law.
Microsoft cancelled the game in February, for reasons that it said were unrelated to the suit. The settlement announced on Tuesday ties up the remaining loose ends.
As part of the settlement, Microsoft has agreed not to use the term "Mythica" or a number of derivations of that term in connection with future on-line computer games, and will drop its US applications to register Mythica as a trade mark.
In addition, Microsoft has agreed to assign to Mythic, for an undisclosed sum, certain international trade mark applications and registrations, common law rights and associated goodwill pertaining to the name "Mythica". Commercial domain names using the name will also be handed over.
As part of the settlement, neither party admitted any fault or liability.