Blizzard's team-based FPS Overwatch, which was announced with great fanfare at BlizzCon, may end up with an entirely new title by the time it's rolled out to the public. It turns out that an application for a trademark on the word "Overwatch" has already been filed for a paintball-related game/smartphone app—you can check that out here, should you so desire—and the attorney examining Blizzard's filing made a mistake in letting it through.
The US Patent and Trademark Office suspended the Overwatch application last week, stating in the suspension notice that "the trademark examining attorney noted a prior pending application that, if it matured to registration, may result in the refusal of applicant’s mark under Trademark Act Section 2(d) because of a likelihood of confusion between the two marks." The attorney in question issued an "Office Action," but should have suspended the application outright.
It's clearly not Blizzard's fault—the statement includes an apology for any inconvenience—but its trademark filing is nonetheless dead in the water "until the earlier-filed application is either registered or abandoned."
Less clear is Blizzard's next step. It can "respond" to the notice, but there's no indication as to the value or potential outcomes of doing so. It could also opt to buy Innovis Labs, I suppose, or throw money at it until it agrees to give up the name; or it could opt to simply change the name of its own game. Which is probably the most sensible option, since I don't think anyone is terribly attached to it yet, but I certainly wouldn't presume to make any predictions about the convoluted world of trademark law.
