This video game creates zero risk that a consumer will buy furniture from the wrong store, so trade dress should be inapplicable. IKEA would likely even lose in court. But as the article points out: legal proceedings ... get really expensive.
This move was pure bullying by IKEA lawyers.
And almost as comical as Nintendo buying rights to a porn movie to prevent their distribution:
I think that would be a fair price to pay for freeing our society from the shackles of pretending you can own an idea, but I get where these executives are coming from.
No, actually, we decide things based on the law, not based on which side you like more.
If you could afford lawyers, you could definitely get away with that game, but it's easier for IKEA to stomp you.