Originally Posted by Hellacool
You may want to pull your head out of the sand and do a little research. I know you hate anything not Apple but Google is your friend. News flash, you do not walk away with a cross licensing if what you say is true.
MS "saved" Apple because Apple had them over a barrel. MS, as usual in those days, was caught with their hand in the cookie jar. Caught with Apple's Quicktime code. Before they stole that, movies and other video wouldn't play properly in Windows. They would be jerky from frame to frame.
Apple threatened to sue.
They came to a settlement (wisely) in which Apple and MS would share patents in various bits of software, and also that MS would buy $150,000,000 in non voting Apple stock and announce support for Apple by continuing development of Office for at least 5 years.
This wasn't done out of the goodness of Gates' heart. Apple in effect used a bit of extortion on MS due to the latter's act of theft. It was in Billy's best interest to play Apple's game or face worse penalties. That $150 million investment in Apple was probably going to be a lot cheaper than a lawsuit with Apple.
So MS' $150m stock investment was the result of a settlement of a lawsuit. It was, however, an INITIAL payment of a much larger sum that would be paid out to Apple over the course of a few years. At the time this is what then Apple CFO Fred Anderson said. The exact amount of the settlement is still unknown.
Both companies would cross-license all existing patents and any new ones over the following five years. As we know, Apple would make IE the default Mac browser, which in the context of the period isn't a strange thing.
Apple had leverage over MS, arising from the Apple Computer vs. San Francisco Canyon Co. lawsuit.
Apple charged San Fran Canyon Co with copyright infringement and wrongdoing. And they filed an IP suit accordingly. These guys were a 3rd party contractor for Apple. However, the action also included MS and Intel. Canyon worked on video software for Apple's QuickTime for Windows and Intel's DCI. Apple claimed their copyrighted code was used in the shipping version of MS' Video for Windows and will be used by both companies in the future.
Apple claimed that after seeing demos of Quicktime for Windows and Video for Windows at the 1992 expo in Vegas, Intel's upper management asked Canyon to provide software to them that would make the speed of Video for Windows as fast as Quicktime. Months later, Canyon sent Intel its code and Video for Windows got the performance boost with Quicktime For Windows. Apple added Intel and MS to the action, and Apple showed that thousands of lines of code for video used in Windows came direct from Apple's Quicktime for Windows (Apple's software.)
As we know, some years later at the Boston Macworld Expo, the companies were like best friends.
MS and Intel got caught red-handed and paid for it. MS hired former Apple guys and finally made Office into usable Mac apps.
Not quite a win for MS. Apple simply took full advantage of MS' typical behaviour (the sort of behaviour that came to light later in antitrust court.)
Interestingly enough, had MS not acted like a thief at the time, Apple might not be where they are today.
These details weren't widely reported back in 1997. So they're easy to miss, probably due to all the breathlessness and emotional highs and lows going on at the time. There was a mention of other payments MS agreed to make in addition to the $150 million. The amount was never publicly disclosed (which isn't really surprising.) For instance, the particulars of the recent Apple-Nokia deal weren't disclosed publicly either. Apple's financial records at the time suggested it was substantial.
The only mention we have of these later payments was from a televised broadcast, and likely the settlement docs which may or many not be available for public perusal.
From: firstname.lastname@example.org (Chris Gorski);
Sent at 8/6/97; 10:11:21 AM;
More Info...from CNBC
Sorry to keep writing, but my brain feels like it's connected to a fire hose...
Apple and MS are also collaborating on Java. What this means for Sun is anybody's guess. Again, forgot about this.
Bruce Francis will interview Ed Woolard (Apple board member) at 10:30 ET (7:30 your time) on CNBC. JObs won't be talking to the press today.
It's my guess that CNNfn (if your cable system carries it) will have very extensive coverage of all this on Digital Jam at 11 eastern (8 your time), probably with lots of video. It's the only thing worth watching on fn, even though Steve Young (their lead anchor) hasn't a clue.
From: email@example.com (Chris Gorski);
Sent at 8/6/97; 10:42:37 AM;
More Bruce Francis News
In addition to all the other stuff that has been said, Edgar Woolard, Apple Board member and DuPont Chairman jsut revealed to CNBC's Bruce Francis that MS will, as part of the patent settlement, make "balancing payments" to Apple over the next 5 years. He would not disclose the sum.
For your own interest and edification, start here: