DR-DOS

Microsoft Corp., a leading software manufacturer, filed suit March 20 in San Diego U.S. District Court, claiming that Kaypro failed to pay about $750,000 in software royalties under separate contracts in 1987 and 1988.

Based in Redmond, Wash., Microsoft developed a popular disk operating system (DOS) series of programs that is used in almost all computers modeled after those manufactured by International Business Machines (IBM). MS-DOS, a similar software system to IBM's own DOS version, is used by "clone" computers and generally is required before any other programs can be used on such a machine.

Marcello said the Microsoft royalty dispute "could end up being a blessing in disguise" with Kaypro switching to a competitor's disk operating system.

Kaypro began the change to Digital Research's DOS programs within the last two to three weeks, Marcello said.

Microsoft officials - claiming $750,000 in unpaid royalties - were expected to negotiate a long-term repayment agreement with Kaypro, but Marcello said the local firm received a court summons instead.

"I was shocked when we did receive the summons. I was expecting a call from their attorney," he said. "It doesn't make sense. You don't pull that kind of nonsense. It's not the style I'm used to, or I should say, it's not the style I like."

Maintaining that Kaypro actually owes about $150,000 in royalties for using the MS-DOS programs, Marcello said the local company is considering a countersuit.

"We're not doing anything more than just thinking about it," he said.

Meanwhile, Marcello said, the firm is gearing up for its annual stockholder's meeting, scheduled for April 19 in Rancho Santa Fe. Although it's too early to make projections, he said, Kaypro appears to be climbing out of its losses.
(Del Mar Citizen, April 5, 1989)

Because of a lawsuit, Kaypro Corp. has switched its computers from one disk operating system to another, which it claims offers equal compatibility with IBM designed personal Business computers.

Microsoft Corp., designer of the MS-DOS operating system that enables computers to use software designed for IBM's personal computer line, has terminated licenses granted Kaypro Corp. in 1985 and 1988.

In a lawsuit filed in U.S. District Court, Microsoft claims Kaypro owes it more than $749,000 in royalties and other fees.

"We haven't been using MS-DOS for a month or so," said Joseph Marcello, Kaypro's senior vice president and chief financial officer. "We now are using DR-DOS" developed by Digital Research Inc. of Monterey. "The reports I get are that it is equal to or better than MS-DOS."

Marcello said he will meet with Microsoft officials Thursday at the software company's Redmond, Wash., headquarters.

"We feel we might be obligated to them for about $150,000 but have not taken an audit. We plan to do that and see exactly what our obligation is. Under the formula (in the license) we pay so much for every computer about $25. For DR-DOS, it's $5 per computer, which is a lot of savings." Marcello said he will meet today in San Jose with officials of Fujitsu Inc., "our largest creditor," seeking to negotiate an extension of Kaypro's debt to that company.
(San Diego Union, April 5, 1989)

Kaypro Corp. has been equipping all computers in its new "KC" line of economical machines with the DR-DOS operating system published by Digital Research Inc.

"We've chosen DR-DOS because it is 25 percent faster, yet compatible with MS-DOS. It offers more features, without some of the limitations of its well-known counterparts," stated Andrew Kay, president and chairman of the board of Solana Beach-based Kaypro Corp.

DR-DOS is included at no extra charge with the KC line of computers which Kaypro has recently begun to manufacture. The computer line includes the KC-1, a complete 8088 microcomputer which retails for $795; the KC-2, an 80286 microcomputer which sells for $1,195; and the newest addition to the KC line, the KC-3, an 80386, 20 MHz microcomputer retailing for $2,095. This is not the first time that Digital Research and Kaypro have teamed up. According to Kay, "We started with Digital Research back in 1982 with our very first computer systems, and we've had a solid working relationship with them ever since.

"DR-DOS is an extremely fast, memory-efficient operating system which enables us to provide the consumer with the high-value/low-price product he has come to expect from Kaypro."

The newest version of DR-DOS is release 3.41. It is a high-quality, single-user operating system which is ROMable and DOS-compatible.
(Computer Focus, September 19, 1989)