Seriously?!? The game (Elder Scrolls) isn't called just Scrolls... Scrolls refers to "a roll of parchment, paper, copper, or other material, especially one with writing on it" and another definition is "the curved head of a violin or other stringed instrument"!
Just cause their game uses that name in it's title doesn't mean they own that word... I say let it stand. A good lawyer could get this kicked out of court with a counter suit for expenses. The small company wouldn't pay a penny. Only a moron would even think the word 'Scrolls' referred only to 'The Elder Scrolls'. Comeon Bathesda... Take some of that lawyer money and hire better texture designers... Good Grief!