When Sonic & Knuckles came out, I always thought that the "Lock-On" technology was the coolest invention in the world (at the time). But I believe if the whole "trademark/copyright" issue was null and void, it would have been used to it's full advantage.
Think about it, with all the rom hacks we see today and with all the pirated games back then in the 90's, "Lock-On" technology could have done so much. Like instead of always having the "Blue Sphere" game, it could have the potential to replace any video game character with either sonic or knuckles (depending on what game it is), or change the way a game looks/plays. Like Knuckles playing on Ristar's world, or Ristar on the floating island.