Page "Software" Paragraph 4

Until that time, software was bundled with the hardware by Original equipment manufacturers ( OEMs ) such as Data General, Digital Equipment and IBM.

When a customer bought a minicomputer, at that time the smallest computer on the market, the computer did not come with Pre-installed software, but needed to be installed by engineers employed by the OEM.

Computer hardware companies not only bundled their software, they also placed demands on the location of the hardware in a refrigerated space called a computer room.

Most companies had their software on the books for 0 dollars, unable to claim it as an asset ( this is similar to financing of popular music in those days ).

When Data General introduced the Data General Nova, a company called Digidyne wanted to use its RDOS operating system on its own hardware clone.

Data General refused to license their software ( which was hard to do, since it was on the books as a free asset ), and claimed their " bundling rights ".

The Supreme Court set a precedent called Digidyne v. Data General in 1985.

The Supreme Court let a 9th circuit decision stand, and Data General was eventually forced into licensing the Operating System software because it was ruled that restricting the license to only DG hardware was an illegal tying arrangement.

Unable to sustain the loss from lawyer's fees, Data General ended up being taken over by EMC Corporation.

The Supreme Court decision made it possible to value software, and also purchase Software patents.