This morning it was discovered that Ubisoft has filed to abandon the Watch_Dogs trademark, but this doesn't mean the game has been cancelled. The abandonment instead means "Game software and electronic game programs, namely, software games recorded on CD-ROMs, digital video discs, and cartridges for console and individual, portable gaming systems; software games that are downloadable from a remote computer site and electronic game software for mobile phones, personal digital assistants, and handheld computers."
Back in November 2013 it was confirmed that Watch_Dogs would be pushed back to Spring 2014 for more development time. According to Fenwick and West IP litigation specialist Jed Wakefield in a statement to Polygon "Sometimes people withdraw trademark applications as part of a resolution of a despite of someone else using a trademark" and "It could be other people who own trademarks involving the term 'Watch Dogs' or other kinds of software might have reached out and expressed concerns. Or it could mean the way they're actually releasing the game would mean they couldn't come up with specimens of use that would meet the description in that particular application."
Regardless it means that Ubisoft Montreal is still developing the Watch_Dogs and it will be release on Xbox 360, Xbox One, PS3, PS4, and PC in Spring 2014. This is a massive relief for me personally, I want this game to come out.
Update: Ubisoft has stated that "We are working directly with the USPTO on reinstating the trademark for Watch Dogs and it will be active again in the coming days,” and "The matter has no impact on Watch Dogs' development."