Untilthattime,softwarewasbundledwiththehardwarebyOriginalequipmentmanufacturers(OEMs)suchasDataGeneral,DigitalEquipmentandIBM[citationneeded].Whenacustomerboughtaminicomputer,atthattimethesmallestcomputeronthemarket,thecomputerdidnotcomewithPre-installedsoftware,butneededtobeinstalledbyengineersemployedbytheOEM.Computerhardwarecompaniesnotonlybundledtheirsoftware,theyalsoplaceddemandsonthelocationofthehardwareinarefrigeratedspacecalledacomputerroom.Mostcompanieshadtheirsoftwareonthebooksfor0dollars,unabletoclaimitasanasset(thisissimilartofinancingofpopularmusicinthosedays).WhenDataGeneralintroducedtheDataGeneralNova,acompanycalledDigidynewantedtouseitsRDOSoperatingsystemonitsownhardwareclone.DataGeneralrefusedtolicensetheirsoftware(whichwashardtodo,sinceitwasonthebooksasafreeasset),andclaimedtheir\"bundlingrights\".TheSupremeCourtsetaprecedentcalledDigidynev.DataGeneralin1985.TheSupremeCourtleta9thcircuitdecisionstand,andDataGeneralwaseventuallyforcedintolicensingtheOperatingSystemsoftwarebecauseitwasruledthatrestrictingthelicensetoonlyDGhardwarewasanillegaltyingarrangement.[5]Soonafter,IBM\'published\'itsDOSsourceforfree,[citationneeded]andMicrosoftwasborn.Unabletosustainthelossfromlawyer\'sfees,DataGeneralendedupbeingtakenoverbyEMCCorporation.TheSupremeCourtdecisionmadeitpossibletovaluesoftware,andalsopurchaseSoftwarepatents.ThemovebyIBMwasalmostaprotestatthetime.FewintheindustrybelievedthatanyonewouldprofitfromitotherthanIBM(throughfreepublicity).MicrosoftandApplewereabletothuscashinon\'soft\'products.Itishardtoimaginetodaythatpeopleoncefeltthatsoftwarewasworthlesswithoutamachine.Therearemanysuccessfulcompaniestodaythatsellonlysoftwareproducts,thoughtherearestillmanycommonsoftwarelicensingproblemsduetothecomplexityofdesignsandpoordocumentation,leadingtopatenttrolls.
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