While acknowledging that he made 86-DOS compatible with CP/M, Paterson has maintained that the 86-DOS program was his original work and has denied allegations that he referred to CP/M code while writing it. When a book appeared in 2004 claiming that 86-DOS was an unoriginal "rip-off" of CP/M, Paterson sued the authors and publishers for defamation.
The judge found that Paterson failed to "provide any evidence regarding 'serious doubts' about the accuracy of the Gary Kildall chapter. Instead, a careful review of the Lefer notes ... provides a research picture tellingly close to the substance of the final chapter" and the case was dismissed on the basis that the book's claims were constitutionally protected opinions and not provably false.
Paterson left SCP in April 1981 and worked for Microsoft from May 1981 to April 1982. Microsoft renamed 86-DOS to MS-DOS on 27 July 1981. After a brief second stint with SCP, Paterson started his own company, Falcon Technology, a.k.a. Falcon Systems. In 1983, Microsoft contracted Paterson to port MS-DOS to the MSX computers standard they were developing with ASCII Corporation. Paterson accepted the contract to help fund his company and completed the work on the MSX-DOS operating system in 1984. Falcon Technology was bought by Microsoft in 1986 to reclaim one out of two issued royalty-free licenses for MS-DOS (the other belonging to SCP), eventually becoming part of Phoenix Technologies. Paterson worked a second stint with Microsoft from 1986 to 1988, and a third stint from 1990 to 1998, during which time he worked on Visual Basic.
After leaving Microsoft a third time, Paterson founded another software development company, Paterson Technology, and also made several appearances on the Comedy Central television program BattleBots. Paterson has also raced rally cars in the SCCA Pro Rally series, and even engineered his own trip computer, which he integrated into the axle of a four-wheel-drive Porsche 911.
Schulman, Andrew; Michels, Raymond J.; Kyle, Jim; Paterson, Tim; Maxey, David; Brown, Ralf D. (1990). Undocumented DOS: A programmer's guide to reserved MS-DOS functions and data structures (1 ed.). Addison-Wesley. ISBN 978-0-201-57064-9. ark:/13960/t14n8vs6f. Retrieved 2022-11-26. (xviii+694+viii pages, 2 5.25"-floppies) Errata: [1][2] 978-0-201-57064-9
Schulman, Andrew; Michels, Raymond J.; Kyle, Jim; Paterson, Tim; Maxey, David; Brown, Ralf D. (1990). Undocumented DOS: A programmer's guide to reserved MS-DOS functions and data structures (1 ed.). Addison-Wesley. ISBN 978-0-201-57064-9. ark:/13960/t14n8vs6f. Retrieved 2022-11-26. (xviii+694+viii pages, 2 5.25"-floppies) Errata: [1][2] 978-0-201-57064-9
Zbikowski, Mark; Allen, Paul; Ballmer, Steve; Borman, Reuben; Borman, Rob; Butler, John; Carroll, Chuck; Chamberlain, Mark; Chell, David; Colee, Mike; Courtney, Mike; Dryfoos, Mike; Duncan, Rachel; Eckhardt, Kurt; Evans, Eric; Farmer, Rick; Gates, Bill; Geary, Michael; Griffin, Bob; Hogarth, Doug; Johnson, James W.; Kermaani, Kaamel; King, Adrian; Koch, Reed; Landowski, James; Larson, Chris; Lennon, Thomas; Lipkie, Dan; McDonald, Marc; McKinney, Bruce; Martin, Pascal; Mathers, Estelle; Matthews, Bob; Melin, David; Mergentime, Charles; Nevin, Randy; Newell, Dan; Newell, Tani; Norris, David; O'Leary, Mike; O'Rear, Bob; Olsson, Mike; Osterman, Larry; Ostling, Ridge; Pai, Sunil; Paterson, Tim; Perez, Gary; Peters, Chris; Petzold, Charles; Pollock, John; Reynolds, Aaron; Rubin, Darryl; Ryan, Ralph; Schulmeisters, Karl; Shah, Rajen; Shaw, Barry; Short, Anthony; Slivka, Ben; Smirl, Jon; Stillmaker, Betty; Stoddard, John; Tillman, Dennis; Whitten, Greg; Yount, Natalie; Zeck, Steve (1988). "Technical advisors". The MS-DOS Encyclopedia: versions 1.0 through 3.2. By Duncan, Ray; Bostwick, Steve; Burgoyne, Keith; Byers, Robert A.; Hogan, Thom; Kyle, Jim; Letwin, Gordon; Petzold, Charles; Rabinowitz, Chip; Tomlin, Jim; Wilton, Richard; Wolverton, Van; Wong, William; Woodcock, JoAnne (Completely reworked ed.). Redmond, Washington, USA: Microsoft Press. p. 20. ISBN 978-1-55615-049-4. LCCN 87-21452. OCLC 16581341. (xix+1570 pages; 26 cm) (NB. This edition was published in 1988 after extensive rework of the withdrawn 1986 first edition by a different team of authors. [3] While mostly based on DOS 3.2, this book has an appendix covering changes introduced with DOS 3.3.) 978-1-55615-049-4
"86-DOS version 0.3 (1980-11-15) License Agreement between Seattle Computer Products and Microsoft" (PDF). 1981-01-06. Archived (PDF) from the original on 2020-02-18. Retrieved 2013-04-01. (NB. Published as part of the Comes v. Microsoft case as exhibit #1.) http://antitrust.slated.org/www.iowaconsumercase.org/011607/0000/PX00001.pdf
Paterson, Tim (June 1983). "An Inside Look at MS-DOS - The design decisions behind the popular operating system". BYTE. 16-Bit Designs. Vol. 8, no. 6. pp. 230. ISSN 0360-5280. Retrieved 2013-10-19. (NB. The article uses "MS-DOS" throughout to refer to both 86-DOS and MS-DOS, but mentions QDOS and 86-DOS in a sidebar article, "A Short History of MS-DOS".) [4][5]
Paterson, Tim (1994-10-03). "From the Mailbox: The Origins of DOS" (PDF). Microprocessor Report. Vol. 8, no. 13. MicroDesign Resources. Archived from the original (PDF) on 2003-12-04. Retrieved 2006-11-20.
Evans, Harold; Buckland, Gail; Lefer, David (2004). They Made America: From the Steam Engine to the Search Engine: Two Centuries of Innovators. Little, Brown and Company. ISBN 978-0-316-27766-2. [6][7] 978-0-316-27766-2
The Associated Press (2005-03-02). Seattle Post-Intelligencer (ed.). "Programmer sues author over role in Microsoft history". USA Today. Seattle, Washington, USA. Archived from the original on 2020-02-18. Retrieved 2006-11-20. /wiki/The_Associated_Press
United States District Court for the Western District of Washington (2007-07-25) [2005-02-28]. "Paterson v. Little, Brown, and Co., et al. - Order" (PDF). Seattle Times. Seattle, Washington, USA. Case 2:05-cv-01719-TSZ Document 29. Archived from the original (PDF) on 2018-10-03. Retrieved 2014-12-21. /wiki/United_States_District_Court_for_the_Western_District_of_Washington
Orlowski, Andrew (2007-07-30). "MS-DOS paternity suit settled - Computer pioneer Kildall vindicated, from beyond the grave". The Register. The Channel. Archived from the original on 2020-02-07. Retrieved 2007-07-31. https://www.theregister.co.uk/2007/07/30/msdos_paternity_suit_resolved/
Schulman, Andrew; Michels, Raymond J.; Kyle, Jim; Paterson, Tim; Maxey, David; Brown, Ralf D. (1990). Undocumented DOS: A programmer's guide to reserved MS-DOS functions and data structures (1 ed.). Addison-Wesley. ISBN 978-0-201-57064-9. ark:/13960/t14n8vs6f. Retrieved 2022-11-26. (xviii+694+viii pages, 2 5.25"-floppies) Errata: [1][2] 978-0-201-57064-9
Paterson, Tim (2014-02-17). "The History of MSX-DOS". Jorito, Maggoo, John Hassink, MSX Resource Center. Archived from the original on 2020-02-18. Retrieved 2014-05-31.
Lach, Eric (1986-09-29). "Microsoft buys major assets of Falcon, reclaims royalty-free MS-DOS license". InfoWorld - The PC News Weekly. Vol. 8, no. 39. Redmond, Washington, USA: Popular Computing, Inc., CW Communications, Inc. p. 27. ISSN 0199-6649. Retrieved 2014-08-13. https://books.google.com/books?id=pzwEAAAAMBAJ&pg=PA27
Schulman, Andrew; Michels, Raymond J.; Kyle, Jim; Paterson, Tim; Maxey, David; Brown, Ralf D. (1990). Undocumented DOS: A programmer's guide to reserved MS-DOS functions and data structures (1 ed.). Addison-Wesley. ISBN 978-0-201-57064-9. ark:/13960/t14n8vs6f. Retrieved 2022-11-26. (xviii+694+viii pages, 2 5.25"-floppies) Errata: [1][2] 978-0-201-57064-9
Schulman, Andrew; Michels, Raymond J.; Kyle, Jim; Paterson, Tim; Maxey, David; Brown, Ralf D. (1990). Undocumented DOS: A programmer's guide to reserved MS-DOS functions and data structures (1 ed.). Addison-Wesley. ISBN 978-0-201-57064-9. ark:/13960/t14n8vs6f. Retrieved 2022-11-26. (xviii+694+viii pages, 2 5.25"-floppies) Errata: [1][2] 978-0-201-57064-9
Schulman, Andrew; Michels, Raymond J.; Kyle, Jim; Paterson, Tim; Maxey, David; Brown, Ralf D. (1990). Undocumented DOS: A programmer's guide to reserved MS-DOS functions and data structures (1 ed.). Addison-Wesley. ISBN 978-0-201-57064-9. ark:/13960/t14n8vs6f. Retrieved 2022-11-26. (xviii+694+viii pages, 2 5.25"-floppies) Errata: [1][2] 978-0-201-57064-9