Read all about it here. At first glance, I was pretty certain that the case was completely ludicrous, but ChasFile makes a fairly decent case in the Metafilter thread on the subject that NCSoft might really be profiting illegitimately from Marvel's copyrights.

So let's grant that Marvel's case is not completely ludicrous.

I still tend to err on the side of free speech and fair use though. If people can't create their own avatars of Marvel characters totally independently of the game's creators, what sort of superhero game (or any non-Marvel superhero work, for that matter) would ever be legal?

I also think Cory D is right when he says that this is transparent corporate thuggery. This is about a step and a half away from accusing City of Heroes of thoughtcrime.

Marvel owns the Hulk and Spiderman; but it doesn't and shouldn't own people's imaginations. This one should be thrown out.