In an update to Hong Kong retailer Lik-Sang's Web site, the company has noted that Sega has taken issue with the device known as the Treamcast, which is essentially a portable version of the Dreamcast with a small LCD monitor built into the top of the device. Attempts to reduce the questionable nature of the device were made by removing trademarks and other such details that would suggest the Treamcast was an official product, but Sega of Japan feels that the product still infringes on its property.

We'll post more as it becomes available.