By Danel 
In 1979, Steve Jobs paid $1 million to see a secret Xerox project.
Then Bill Gates heard about it from a former Xerox employee.
Within months, the two were racing to copy what Xerox was working on.
This sparked the biggest competition in the history of technology…
1979: A young Steve Jobs visited Xerox PARC.
What he saw there changed the world of computing forever: a new type of computer interface that allowed you to control things with the click of a mouse.
No more typing commands. Instead, there were just icons that we could easily interact with.
But this story isn’t about Xerox…
It’s about what happened next:
Jobs immediately realized that this was the future of computing.
He made a deal: Apple offered Xerox 100,000 shares of pre-owned stock worth $1 million to give it a chance to see Xerox’s technology.
Then…
He ordered his best engineers to do the same thing.
But someone else had the same idea…
Bill Gates entered the fray.
Microsoft had learned about this new computing landscape through a former Xerox researcher named Charles Simonyi.
Now both companies were racing to bring this technology to market.
But there was a crucial difference in their approaches:
Jobs: He wanted to create a closed system. Perfect software running on perfect hardware.
Gates: He thought differently. Windows wanted to run on any computer.
This fundamental difference sparked a war that forever shaped the computing world…
1984: Apple introduced the Macintosh.
It was amazing. It was the first computer to be made available to the masses with a graphical interface.
At the same time, Microsoft was dreaming up Windows.
Jobs was furious when he found out. He felt betrayed.
But here’s where the story gets interesting…
1985: Microsoft and Apple signed a landmark agreement.
Apple granted Microsoft a license to use the visual aspects of Apple’s Lisa and Macintosh computers.
This agreement meant…
Apple allowed Microsoft to use parts of the computers’ appearance and functionality (such as screen layout and graphics).
“Non-exclusive”: Apple can license this to Microsoft, but not to anyone else.
“Worldwide”: Microsoft can use this license anywhere in the world.
“Royalty-free”: Microsoft doesn’t have to pay Apple anything to use it.
“Perpetual”: Microsoft can use it forever.
“Derivative works”: Microsoft can build its own versions or modifications based on Apple’s visual appearance.
The agreement had a crucial legal loophole:
It stated that the license would apply to “current and future software.”
This detail cost Apple a lot of money in the future…
1987: Microsoft released Windows 2.0.
Its appearance was strikingly similar to the Mac.
Jobs was furious…
Gates believed he had broken the agreement.
This led to a series of arguments between Jobs and Gates.
The battle lines were drawn…
1988: Apple sued Microsoft for copyright infringement.
The lawsuit claimed that Windows 2.0 copied the visual and functional aspects of the Mac.
But a legal loophole in the 1985 agreement proved disastrous:
The court ruled that the “future software” clause protected Microsoft.
But the battle was not over…
1997: Apple was on the verge of bankruptcy.
Its stock price was plummeting.
The Mac vs. Windows war had taken its toll.
Then something unexpected happened:
Bill Gates appeared on stage at Macworld and announced a $150 million investment in Apple.
The audience booed. But this moment changed everything…
The investment came with a deal:
Microsoft would continue to make its Office software for the Mac.
Apple would make Internet Explorer its primary web browser.
The two companies agreed to a broad patent sharing agreement.
This deal helped stabilize Apple’s finances.
Most importantly, it ended the war over the graphical user interface (GUI).
But there’s a deeper lesson:
The GUI war wasn’t just about the look of the computer.
It was about two different computer visions:
Apple’s closed system with control
Microsoft’s open platform
So what can we learn from the Microsoft-Apple rivalry and agreement?
A legal loophole could change everything.
A single, vague line in a contract gave Microsoft Apple a long-term right that it could never rescind.
Vision without a smart strategy comes at a cost.
Jobs had a dream. But Gates had a game plan—and he won.
Ideas alone don’t win. Execution is key.
Xerox invented it. Apple perfected it. Microsoft expanded it.
Your enemy today may be your ally tomorrow.
Microsoft saved Apple from bankruptcy in ’97. Business is full of surprises.
Protect what makes you special.
Apple gave away a lot for free. It undervalued what made it special.
Your business model shapes your future.
Closed systems create control. Open systems build dominance. Choose wisely.
This is not just a technological story. It is a great story that teaches great lessons in strategy, vision, negotiation, and survival.
Which side would you choose? The one that strives for perfection or the one with smart strategy ?