I don't know exactly when they were using it (wiki says the Pre-Computer 1000 was mid-1988), but did Microsoft or Tandy care anymore, or even know about it while they still cared?
VTech was making these
weird hybrid machines which were basically what you’d get if you left a very lonely TRS-80 Model I and Color Computer alone in the back room of a Radio Shack from 1982, I would guess the Pre-Computer and friends’s BASIC is a direct descendant of that? Apparently these were intended to compete with EACA’s
Color Genie, which likewise took Model I BASIC (filtered through the “fully” TRS-80 compatible “Video Genie” clone) and minimally hacked it up to support the different video system.
EACA was found guilty,
via their US reseller, of violating Tandy’s copyright but, confusingly enough, not Microsoft’s; EACA *had* paid Microsoft a license fee for “generic BASIC” which covered code compiled from the same source with the same entry points as Tandy, but this license *did not* cover about 2K’s worth of code which was specifically written to support Tandy’s hardware. Instead of rewriting those parts EACA just ripped them off (which no doubt improved compatibility), and after losing the lawsuit they agreed to stop selling the Video Genie… in the US. Apparently Tandy didn’t think it worth their time to pursue them in other countries, which considering it was 1983 at this point kind of adds up.
(If we believe that EACA actually did have that license to “generic” BASIC, and the infringing parts were mostly TRS-80-specific initialization and I/O code then it’s conceivable that maybe the *Color* Genie *was* “legal”, since those are the parts you’d need to change or comment out if you radically changed the hardware/memory map?)
Of course that’s EACA, not Vtech. Both were based in Hong Kong, which was a hotbed of unlicensed cloning in the early 80’s (in addition to TRS-80’s they made Apple clones, many of the first PC clones before legal BIOSes from the likes of Phoenix were available, etc.) so maybe they never had a Microsoft license at all, but… again, if EACA really *did* have one it’s not much of a stretch to guess MS might also have rubber stamped one for Vtech. I’m pretty sure Vtech did ink an actual legal license for the AppleSoft clone in the Laser 128 (to cover their butts when Apple inevitably came snooping) so… if they didn’t have the rights in 1982 it wouldn’t surprise me if their later license for 6502 BASIC included some clauses to cover usage of the Z80 code, perhaps including “back payment” for prior activity.