Excuse me Bush2000... I guess I should believe your hype rather than my memory of the conversation I had with the Stac programer (and part owner) who told me this "urban legend" in a conversation I had with him shortly after Microsoft bought them out. No, I think I will believe my memory...
Your clue is ludicrous. Stac Electronics didn't bring a "copyright suit" because they didn't copyright their software... the PATENTED IT!
A Patent infringement lawsuit is a much more potent lawsuit than copyright infringement, Bush. Copyright may be extablished merely by claiming it on the printed form of the newly created document. PATENTS require a much higher level of certification before being granted. A Patent has to be registered, a copyright does not although it can be.
And you are aware that Microsoft LOST that suit? $120 million dollar award, IIRC... which they then converted to a buy out to avoid paying future royalties. The fact that the programer's mother's name was IN the Microsoft version was the proof that made the case.
Stac Electronics sued Microsoft for patent infringement when Microsoft introduced a data compression scheme into MS-DOS which resembled Stac's Stacker software. Stac was awarded $120 million by a jury in 1994 and Microsoft was ordered to recall versions of MS-DOS with the infringing technology. Subsequently Microsoft and Stac settled the case; Microsoft promised not to appeal, paid Stac $43 million, and purchased $40 million of preferred Stac stock.
You don't pay out that kind of money unless your fingers were caught in the cookie jar.