In August 1998, Apple Computer launched the iMac, a compact, all-in-one computer clad in translucent blue plastic. It immediately became a huge hit with consumers, due in large part to its distinctive design. Its robust sales spurred a dramatic turnaround at Apple. Exactly one year later, eMachines introduced the eOne, a compact, all-in-one computer clad in translucent blue plastic. Apple sued eMachines, claiming the company had illegally copied the iMac’s design. “We’ve invested a lot of money and effort to create and market our award-winning computer designs,” said Apple CEO Steve Jobs, “and we intend to protect them under the law.”

A version of this article appeared in the November–December 1999 issue of Harvard Business Review.