Singularity Law

Third Epoch (1982-1993)

Toward the end of the 1970s, advances in semiconductor technology permitted the development of the first inexpensive, relatively small computers – ushering in the personal computer era. Most of the early companies have been long forgotten – such companies as IMSAI, Cromemco and Osborne. One company, literally started in a garage, however, has survived. Apple Computer provided the first, fully assembled personal computer, and looked like it would dominate the personal computer industry.

Then in 1982, IBM announced that it would begin manufacturing its own personal computer. And not only that, but that its computer, unlike Apple’s, would be based upon an open architecture – that is, any company that wanted to could build and sell an IBM-PC compatible machine. Other companies quickly entered the field with IBM PC-compatible machines, including Compaq and HP. What was most significant to the computer industry (at least in hindsight) was that IBM chose Microsoft to provide the operating system for its PC, and allowed Microsoft to provide the same operating system to any other manufacturer who wanted it.¹ (More after the jump.)

The dawn of the PC industry saw an explosion in the number of software companies, and with that an enormous demand for lawyers who could provide legal services for all of these start-ups, from incorporations to funding to licensing, IP protection, domestic (and later international) distribution agreements, and so forth.

Toward the end of the Third Epoch a new field of practice began to develop – multimedia law. Higher processing speeds, CD-ROM technology, the enormous installed base of PCs, and a group of entrepreneurs who saw the potential for bringing entertainment to the PC by teaming up with the entertainment industry, all converged at this time.

The term “multimedia” became hot. Any company that had the word in its name, or claimed to be developing a multimedia product, was flooded with funding propositions by venture capitalist and other investors who wanted to get in on the ground floor of the “next big thing.” The CD-ROM-based multimedia market looked like a sure thing – until the emergence of the next “bigger” thing – namely, the Internet.

© 2007, 2008 Michael D. Scott. All rights reserved.

Next: “History of Computer/IT Law Fourth Epoch (1993-2001).”
Previous: “History of Computer/IT Law” Second Epoch (1969-1982).

1. IBM had originally contacted Digital Research (DRI) for the operating system, since DRI had the leading personal computer operating system at the time – CP/M). However, although the stories vary, DRI apparently snubbed IBM and IBM then went to its second choice – Microsoft. See S. Krause, Short History of MS-DOS. [↩]