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Intellectual Property Keyed to Merges
Sega Enterprises Ltd. v. Accolade, Inc.
Facts
Sega Enterprises Ltd. (Sega) (Plaintiff) and Accolade, Inc. (Defendant) made and marketed video game cartridges. In order to make its own games compatible with Sega’s (Plaintiff) console, Accolade (Defendant) “reverse engineered” Sega’s (Plaintiff) video game programs to discover the requirements for compatibility with the console. In order to do this, it first copied Plaintiff’s copyright code in its entirety and then disassembled it to see how it worked. Defendant then created its own games for use with Plaintiff’s console, but did not copy Plaintiff’s programs or use any of its codes. Plaintiff sued for copyright infringement. The district court granted Plaintiff’s motion for a preliminary injunction to prevent Defendant from further disassembly of Plaintiff’s object codes. Defendant appealed.
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