Sega Enterprises Ltd V. Accolade Inc.

2178 Words Sep 24th, 2014 9 Pages
Sega Enterprises Ltd v. Accolade Inc. In the year 1989, Sega Enterprises Ltd released Sega Genesis and the game had decent security checks which allowed only the licensed games by the publisher to play on the console. However, Accolade Inc. released their games into market which could be played on Sega’s console. Accolade had to take license from Sega and pay them some fee for licensing, but that would increase the overall cost of their game making it impractical to market it at such overhead charges. So, Accolade decompiled the game of Sega Genesis and re-engineered the code in a way that it could disable the security locks on the Genesis. Sega as a counter measure introduced the TMSS (Trademark Security System) on their then latest version Genesis III, which would scan for and display their trademark on the game before playing. Accolade responded to this change by identifying the TMSS file and adding it to their games. The first lawsuit was filed by the Sega Enterprises Ltd against Accolade Inc. on the grounds of trademark infringement and false designation of origin in violation of sections 32(1) and 43(a) of the Lanham Act (1946). Later Sega even added copyright infringement to the existing case. Accolade counter acted by filing case against Sega under section 43(a) of the Lanham Act (1946). At the District Court level Sega won the lawsuit, but Accolade took the case to the next level by appealing the case at the Ninth Circuit of U.S. Court of Appeals. Accolade won…
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