The Gail C. Gygax Revocable Trust, owner of the intellectual property of the late E. Gary Gygax, and TSR, Inc., a corporation formed by Jayson Elliot, Tim Kask, Ernie Gygax, Luke Gygax and James Carpio have reached a mutually agreeable resolution of their trademark dispute at the United States Patent and Trademark Office. Pursuant to their agreement, the Trust will license the Gygax Magazine trademark to TSR on a non-exclusive basis.
UPDATE: I've been informed by a representative of Luke and Ernie Gygax that both of them left the company. Mrs. Gygax reached a settlement with TSR, Inc., and Luke and Ernie have both withdrawn from TSR as a result of the settlement. Neither of them are affiliated with the company any longer.
Ernie Gygax has now made a public Facebook post about the matter which makes it clear that this settlement was not arrived at amicably.
It is with a heavy heart that I have had to remove myself from TSR and GYGAX magazine. Benoist and I will continue to share original old school gaming. All of which I learned at my fathers side, just as Luke and I also learned how to repair shoes in our youth. I am awake now at 2:42 AM as foolishness infringes on my ability to even enjoy a sound nights rest. I am proud to one of Gary's many offspring and just wish that I had his drive and fortitude to generate material as he did. Yet the acorn doesn't fall far from the Oak and the work that will be created will be in honor of his memory. I wish it to be said that both Tim Kask and R Scott Taylor refused to sign the deal as well when asked.
So it sounds like both parties have reached an agreement, that's it's far from amicable, that Gail Gygax's trust owns the Gygax trademark, but that the trademark is licensed to TSR, Inc. The statement doesn't indicate how long that license is for, or whether any other terms are attached. And, of course, the trademarked name is the actual name of Gygax's sons Luke and Ernie, which is why they refused sign the settlement.
You can see the trademark applications here at USPTO.gov. Gail Gygax made an application on March 4th, 2013. Gygax Magazine #1 was released the month before that, in February 2013. TSR, Inc made an application for the same trademark on September 30th, 2013. There are some similar entries for other dates.
You'll find Gygax Magazine here. It appears that Gail's trust also made an application for Gygaxian on August 7th this year.
A little background - I know most who read this know who Gary Gygax was, but new people are coming into the hobby all the time. This is the super-short version. Gary Gygax and Dave Arneson (both sadly passed) co-created Dungeons & Dragons back in the 1970s. The whole history of Gygax and TSR is fraught with conflict - Gary was ousted from the original TSR, he and Arneson fell out, and of course Gail Gygax and the new TSR, Inc. (which until recently included Gary's sons Luke and Ernie) have been embroiled in the above legal dispute for two years. This long interview with Gary Gygax is a fascinating read. The whole history has been, to put it mildly, litigious!