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Recently, Sega has developed its new Genesis console. Accolade making software games that run on Sega's console has accomplished to find out the source code of Sega's new console through reverse engineering and has released six new software games. Sega asserts that Accolade has infringed the property right of Sega because Sega thinks chip peeling is an excessive technology, and Sega claims that it has lost revenue over one millon dollars because of Accolade; thus, Sega claims Accolade to withdraw six games released and quit producing eight new games going to be on sale soon. On the other hand, Accolade asserts that chip peeling is an ordinal technology for software company especially when new console has been developed; moreover, Accolade refers to the potential to face financial distress provided Sega would prohibit to analyze its new genesis console.
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The judgment is that Accolade should pay the licensing fee to Sega for each software game that run on Sega's console. As Sega asserts, Accolade has violated the property right of Sega because Accolade carried out chip peeling without getting a permission from Sega, and that caused a damage to Sega. Sega should get the profit from its products. However, the licensing fee ordered by Sega is too excessive. Sega demanded Accolade to pay $200,000,000 per one software game, but the money must erase Accolade's profit despite Accolade developed a quite popular game. Sega getting the profit from its products, Accolade should get it too. Thus, the licensing fee that Accolade has to pay to Sega must be $1,000,000 for each software game that has already been on sale. That is not so few for Sega and many for Accolade either. In fact, the money paid as the licensing fee is produced by Accolade's products, so the profit should benefit mainly Accolade rather than Sega. Accolade doesn't have to pull six software games from stores because the proper licensing fee will be paid to Sega, and whether or not to quit developing eight new games going to come out is up to Accolade. Of course, Accolade will have to pay the licensing fee as same as games that have already released.
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