Computer Platforms before the Platform Era 9/20/2018 Computer Platforms before the Platform Era 1945 1955 1965 1975 1985 1995 2005 2015 Randal C. Picker James Parker Hall Distinguished Service Professor of Law Ludwig & Hilde Wolf Teaching Scholar The Law School, The University of Chicago

‘45 ‘55 ‘65 ‘75 ‘85 ‘95 ‘05 ‘15 Big Iron, 1945-1982 1945: von Neumann EDVAC paper 1953: Silicon, not Germanium 1964: IBM releases System/360 1982: DOJ dismisses suit vs IBM 1947: Bell Labs invents transistor 1957: Sputnik launches 1945 1955 1965 1975 1985 1956: AT&T and IBM Antitrust Consent Decrees 1958: Integrated circuit invented 1969: DOJ files SA2 antitrust suit vs IBM 1946: ENIAC

The Personal Computer, 1971-2001 ‘45 ‘55 ‘65 ‘75 ‘85 ‘95 ‘05 ‘15 The Personal Computer, 1971-2001 Nov 1971: Intel releases 4004 chip July 1994: US-Microsoft MS-DOS antitrust deal June 2001: DC Circuit affirms MS antitrust liability Mar 2004: EU finds MS violation for WMP Apr 1977: Apple II released Aug 1995: Netscape IPO 1965 1975 1985 1995 2005 Aug 1981: IBM releases PC May 1998: DOJ brings browser antitrust case vs Microsoft Jan 1975: Altair 8800 on cover of Popular Electronics Jan 1976: Gates open letter to hobbyists

‘45 ‘55 ‘65 ‘75 ‘85 ‘95 ‘05 ‘15 The Desktop Internet, 1993-2010 May 2010: EU announces Google investigation Jan 2000: AOL/Time Warner deal 1993: Mosaic Apr 2015: EU Google Shopping SO Apr 1998: Brin & Page Google paper Aug 2004: Google IPO May 2012: Facebook IPO 1985 1995 2005 2015 Dec 2009: AOL/TW divorce July 1995: Amazon goes live Sept 2005: Authors Guild Google Books suit Oct 2015: CA2 rules in favor of Google on books Aug 1995: Netscape IPO Jan 2013: FTC closes Google investigation

‘45 ‘55 ‘65 ‘75 ‘85 ‘95 ‘05 ‘15 Mobile, 2007-2015 Jan 2013: FTC smartphone patent settlement with Google Jan 2010: iPad launch Jan 2007: iPhone launch July 2013: DOJ eBooks antitrust suit against Apple Aug 2012: $1 billion smartphone patent verdict in favor of Apple Sept 2008: Android SDK released Apr 2016: EU announces Android SO 2005 2015 Nov 2007: Amazon Kindle launch Apr 2015: EU announces Android investigation June 2015: CA2 affirms vs Apple in ebooks suit

ACEP: A Platforms Nomenclature Four Terms/Concepts Architecture Commons Ecosystem Platform Key Mechanisms Access Connectivity

Inventing Computers (and an Architectural Commons)

ENIAC: Electronic Numerical Integrator and Computer Chicago Daily Tribune, Feb 15, 1946

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 The Vacuum Tube Army/Air Force Technical Manual, Feb 1952

ENIAC: Electronic Numerical Integrator and Computer Chicago Daily Tribune, Feb 15, 1946

ENIAC Patent U.S. Patent No. 3,120,606 (Feb 4, 1964)

Commons Via Publication: von Neumann and the Electronic Discrete Variable Automatic Computer von Neumann, EDVAC First Draft, June 30, 1945

Commons via Publication: The ENIAC Patent Dispute “The First Draft Report was a printed publication, within the meaning of 35 U.S.C. 102, by June 30, 1945, prior to the ENIAC patent critical date. … The claims of the ENIAC patent asserted in this suit are anticipated by or obvious in view of the First Draft Report.” Honeywell v. Sperry Rand, D. Minn., 1973

Semiconductors Arrive and a Commons is Created

Public Disclosure of Transistor New York Times (July 1, 1948) September 20, 2018

Bardeen & Brattain on The Transistor The Physical Review (July 15, 1948)

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 Bardeen & Brattain Point-Contact Transistor Patent U.S. Patent No. 2,524,035 (Oct 3, 1950)

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 Commons Via Antitrust: The AT&T Lawsuit AT&T Complaint (Jan 14, 1949)

Shockley, Sparks and Teal on Junction Transistor Physical Review (July 1, 1951)

Demonstration of Junction Transistor New York Times (July 5, 1951)

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 Shockley Junction Transistor Patent U.S. Patent No. 2,569,347 (Sept 25, 1951)

Bell Labs Transistor Symposium Bell Labs (Nov 15, 1951)

“Aid the Military Effort” Bell Labs (Nov 15, 1951)

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 Commons Via Antitrust: Required Patent Licensing as a Remedy “The defendants are each ordered and directed to grant or cause to be granted … non-exclusive licenses under all claims or any, some or all existing and future Bell System patents … .” AT&T Final Judgment (Jan 24, 1956)

TI Announces Silicon Transistor Wall Street Journal (May 10, 1954)

A Computing Platform

Commons Via Business Model: IBM System 360 Introduction The New York Times, April 8, 1964

Propertization via Patent: The First Software Patent U.S. Patent No. 3,380,029 (Apr 23, 1968)

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 Propertization Via Antitrust: The IBM Lawsuit New York Times (Jan 18, 1969)

Propertization Via Antitrust?: Business Model Unbundling Los Angeles Times, June 24, 1969

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 Selling Software? Homebrew Computer Club Newsletter, Jan 31 1976

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 Selling Software? Homebrew Computer Club Newsletter, Jan 31 1976

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 Selling Software? Homebrew Computer Club Newsletter, Jan 31 1976

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 Selling Software?: Rebundling? A SECOND AND FINAL LETTER “Some letters suggested that software should be sold for a flat fee to hardware companies who would add the cost of the software to the price of their computer. Whether this is legal or not, the marketability of software to hardware companies is questionable when software is so freely shared among hobbyists.” BILL GATES General Partner, Micro-Soft

Microsoft Windows and the EU

Publishers & Advertisers Music Cos Publishers & Advertisers Developers Media Player W OS Browser Platform tying as one-sided leveraging Consumers OS Extension & Tying in Two-Sided Markets Copyright © 2013 Randal C. Picker

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 Microsoft Fact Sheet, April 2006

9/20/2018 September 20, 2018

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 “Under the commitments approved by the Commission, Microsoft will make available for five years in the European Economic Area (through the Windows Update mechanism) a ‘Choice Screen’ enabling users of Windows XP, Windows Vista and Windows 7 to choose which web browser(s) they want to install in addition to, or instead of, Microsoft’s browser Internet Explorer.” European Commission, Dec 16, 2009

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 www.browserchoice.eu

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 www.browserchoice.eu

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 www.browserchoice.eu

Picker, Internet Giants: The Law and Economics of Media Platforms 9/20/2018 “On the basis of information it has received, the Commission believes that Microsoft may have failed to roll out the choice screen with Windows 7 Service Pack 1, which was released in February 2011.” European Commission, July 17, 2012

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