Note that this is a district court in Stockholm, so good luck selling the game to the US. I still don't get why they don't just choose another name; OTOH i guess all this publicity helps build up the buzz...
(What good would it ZeniMax do if they were to win a lawsuit in the US, though? Mojang distributes digitally. Can US authorities block websites for trademark infringement?)
http://tdr.uspto.gov/search.action?sn=85323305# (check first document)
I have no idea what it all means, but i guess it's not a good thing to bring yourself to a position where you can lose the profits you earned because of a name choice, especially when you have been warned.
However, there is a stronger part mentioned in the denial, which is for clothing. Mojang also applied for a "Scrolls" trademark with regards to clothing. There is already one registered under that mark.