Legal Issues
The introduction of the original NES Game Genie, was met by fierce opposition from Nintendo. Nintendo then sued Galoob in the case Galoob v. Nintendo, claiming that the Game Genie created derivative works in violation of copyright law. Sales of the Game Genie initially stopped in the U.S., but not in Canada. In many gaming magazines of the time, Galoob placed Game Genie ads saying "Thank You Canada!" However, after the courts found that use of the Game Genie did not result in a derivative work, Nintendo could do nothing to stop the Game Genie from being sold in the U.S. Before the lawsuit was filed, Galoob offered to make the Game Genie an officially licensed product but was turned down by Nintendo.
Around the time of the lawsuit from Galoob, Nintendo tried to use other methods to thwart the Game Genie, using ROM checksums in later titles intended to detect the cheat modifications. These measures were partially successful but some could be bypassed with additional codes. Later versions of the Game Genie had the ability to hide Genie modifications from checksum routines.
Sega, on the other hand, was a full endorser of the Game Genie, with their official seal of approval. One of Sega's requirements for this, however, was that the Game Genie wouldn't work with games that have a save feature, such as the Phantasy Star or Shining Force series.
Read more about this topic: Game Genie
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