Our license from Microsoft hasn't been revoked and we don't see any other good reason to stop working on the mod.

I wouldn't rule out the possibility though... A good hunch would be that Weisman paid to get the IP back in order to produce a game, and although a mod isn't quite the same as a retail game, you can't say that it wouldn't affect them if both ended up releasing at about the same time, or even within the same year.

There's a huge misconception (spawned mostly from the Kutaku and Joystiq articles) that he BOUGHT the IP back.

This is incorrect.

He bought the rights to USE the license. It's essentially the same thing as us, except he's using it in "for profit" endeavors in which he would have to pay to use the licenses.

Indeed. That would affect MekTek as well as MWLL, and perhaps others. I wouldn't think this would be to their (S&T) advantage as it would greatly piss off a large section of the MW core community. OTOH, if they are producing a PC-based sim/fps version of Mechwarrior, then MWLL would be a direct competitor. MekTek and the aging MW4:Mercs mods wouldn't likely be as big a consideration. But who knows what they will do with the IP. Could be RTS, could be a console game, etc. Time will tell.

if it was mw3, then most likely.