After that Square Enix sues someone for making game called "Fantasy"

Actually I'll make a short list of some words which are latter part of two word name, do not use these or you may get sued!

Tournament, Agenda, Commander, Conquer, Creed, Company, Bowl, Protocol, Edge, Carnage, Zone, Fortress, Hazard, Effect, War, Wars, Blade, Nights, Sight, Agent, Ruler, Boy, Cell, Asylum, Reloaded, World.

In essence Bethseda is doing exactly the same what any owner of names/words I mentioned would do if they would sue anyone for using the words. Bonus points for recognizing the games where they came from.

P.S Remember that Scrolls in "The Elder Scrolls" is not like Warcraft in "World of Warcraft" but it's more like Tournament in Unreal Tournament, word which by itself does not invoke the brand at all.

The Beatles (well, their label Apple Records) was in a long running trademark dispute with Apple [Computer] which went back and forth for decades.

http://en.wikipedia.org/wiki/Apple_Corps_v_Apple_Computer

If you ever wondered why it took so long for The Beatles to be sold in the iTunes store it's mostly because of the litigation and bad blood between the two parties. I imagine that cold, hard cash healed all wounds.

More like "we sorta have to or the next guy with a name that actually will cause confusion will point to this case we avoided and say 'look! They lost the protection on their mark because they didn't go after these other people!' and he might win"

Much like Apple Records suing Apple, Inc. Sure they lost, but they pretty much had to make the attempt or risk losing in a later case because of not suing earlier.

Trademarks tend to be tied to a specific type of business. A better analogy would be if Apple sues an mp3 product named "Pod: The Music Player".

Or Infogear's iPhone trademark, which Apple aggressively violated.