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It's a trademark dispute, not copyright.
If you are aware of the difference then why use them to mean the same thing?
What King is doing isn't unusual, they want to prevent games too similar to theirs to use words like "candy" or "saga", if they don't do this then they lose IP protection. That is fair and right, even if they only produce crap games.
What isn't right is that their legal team is going about this in a gung-ho way, they clearly did not bother to check if Banner Saga is at all similar to any King.com's games, "hey they are both games right? They they must be the exact same thing!"
We would have to define what is a "common" and "uncommon" word.
If a sleazy game company wanted a free ride on the Banner Saga games, and come up with a somewhat similar looking game and called "Banner Sagas 2FarFromValhalla", and sell it on Steam - we would be up in arms about it.
If King they did intend to keep the trademark "candy" (they've dropped that now) the idea is that they restrict usage of the word to similar games, which is right - if I saw a puzzle game similar to Candy Crush on Android or IOS, and they called it Kandy Krush, that would be obvious deception. But of course, Banner Saga is nothing like what King could produce themselves.
I am not a lawyer, but from what I read the most likely outcome is a joint useage of the word "Saga".
Good to hear.
I'm not a doctor, but King.com makes me sick.
I will try no to sue them over this, as my legal action would match theirs in absurdity.
So it's easy to predict King getting total domination over a singular word that's ambiguously applicable to many games (even games that aren't _actually_ sagas in the sense of the word's literal definition of being an epic viking story).
Semantics. And sarcasm.