But Stac had patents, lawyered up, and sued Microsoft for patent infringement. Microsoft didn't lie down, but after a court ruled that both of them needed a license to ship products, Stac went to the largest OEM customers and offered a license. It was either take the patent license or not ship, and the pressure from the OEMs on Microsoft resulted in a settlement that was not terrible for Stac.
This is one of the best examples I know of how software patents can be good for competition.