In 1989, programmers Pete Gardner and Amory Wong of Distinctive, under the pseudonym USI (Unlimited Software, Inc.), converted Sega's arcade game Out Run for MS-DOS. They used several software libraries they had developed for Test Drive II. Consequently, Accolade charged that Distinctive violated a working agreement, and sued. Accolade sought a preliminary injunction against the distribution and sale of Out Run. Distinctive Software argued that it had only used source code that did routine functions, such as clearing the video screen and that Accolade did not own a copyright on those functions. Accolade argued that their contract for Test Drive II gave them the ownership and copyright of the final product—the game—and the source code used to create it. Distinctive Software won; the court ruled that "the licensing agreement transfers to Accolade the copyright to the concept and design of the video game but not the underlying source code." The court also found that Accolade had failed to demonstrate that the balance of hardships was in its favor.[4]
