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MS-DOS was created by computer manufacturer Seattle Computer Products as 86-DOS, commonly known as QDOS. In a sequence of events that would later inspire much folklore, Microsoft licensed QDOS to IBM on behalf of SCP. Microsoft acquired the system from SCP shortly before the PC's release.
IBM and Microsoft both released versions of DOS. Microsoft released their versions under the name "MS-DOS", while IBM released their versions under the name "PC-DOS", with the following timeline:
Source: [1] PC Museum
MS-DOS grew to include more features from other operating systems. MS-DOS 2.0 introduced features from UNIX such as subdirectories, command input/output redirection, and pipes.
With Intel's introduction of the 80286 microprocessor, IBM and Microsoft began work on a joint project called OS/2, originally a protected-mode version of MS-DOS with a GUI, but Microsoft soon abandoned the project to devote full resources to Windows NT. Digital Research created the GEM environment which reached minimal popularity, but both were soon eclipsed by Microsoft's Windows GUI package, reportedly due to Microsoft's exclusive agreements with computer hardware vendors.
Version 6.0 included the DoubleSpace file systemSee Filing system for this term as it is used in libraries and offices In computing, a file system is a method for storing and organizing computer files and the data they contain to make it easy to find and access them. File systems may use a storage devi, which provided automatic compression of file data. Stac Technologies successfully sued Microsoft for patentA patent is a set of exclusive rights granted by a government to an inventor or applicant for a limited amount of time (normally 20 years from the filing date). The term "patent" originates from the term patere which means to lay open (to public inspectio infringement regarding the compression algorithm used in DoubleSpace. Version 6.22 provided a new file system, DriveSpace, that avoided these issues.
Prior to 1995, Microsoft licensed MS-DOS to computer manufacturers under three types of agreement: per-processor (a fee for each system the company sold), per-system (a fee for each system of a particular model), or per-copy (a fee for each copy of DOS installed). The largest manufacturers used the per-processor arrangement, which had the lowest fee. This arrangement made it expensive for the large manufacturers to migrate to any other operating system, such as DR-DOS. In 1994 the US government charged Microsoft with violations of antitrustAntitrust is also the name for a movie, see Antitrust. Antitrust or Competition laws legislate against trade practices which undermine competitiveness or are considered to be unfair. The term antitrust derives from the US law which was originally formulat law, and a settlement agreement limited Microsoft to per-system licensing. Digital Research did not gain by this settlement, and years later its successor in interest CalderaThe SCO Group A Canopy Group company formerly called Caldera Systems and Caldera International is a corporation that was initially associated with the Linux and open source movement and manufactured workstation and server Linux distributions. After acquir sued Microsoft for damages. This lawsuit was settled with a monetary payment.