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Apple licensed aspects of their Macintosh operating system to Microsoft to use in their new Windows operating system. Apple felt that Microsoft had used far more of their ideas in Windows versions 2 and 3 than had been originally agreed and so started legal proceedings against Microsoft. Most of these claims were not supported by the court's ruling but Microsoft had subsequently used some of the programming code Apple had written to create their QuickTime software and so Apple threatened further proceedings against Microsoft. Bill Gates responded by threatening to cancel development of the Office software for the Mac. The dispute was resolved in 1997 by Apple agreeing to drop all their current lawsuits against Microsoft and to make Microsoft's internet Explorer the default browser on the Macintosh. In return Microsoft agreed to continue developing the Office software, Internet Explorer, and various developer tools and software for the Mac for the next 5 years, and to purchase £94.71 million of non-voting Apple stock. The companies also agreed to mutual collaboration on Java technologies, and to cross-license all existing patents, and patents obtained during the five-year deal, with one another.

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