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‘Albion can’t be copyrighted’ - Peter Molyneux explains how his new game is set in the same world as Fable [VGC]
(www.videogameschronicle.com)
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He's absolutely right! He'd be violating a trademark, not copyright.
Further, just because a name like that came be "copyrighted" doesn't mean the rest of the game isn't lmao.
If I made Nuclear D.C., a post apocalyptic game set it the Fallout universe in Washington D.C. as a followup to Fallout 3, I wouldn't magically be okay just because it's set in a "real" place.