Digital Cornerstone (formerly known as Lindows, Inc. (2001–2004) and Linspire, Inc. (2004–2008)) is a Linux and open source software company with its headquarters in San Diego, California. It has primarily targeted desktop computers with its flagship Linux distribution, Linspire. It was bought in 2008 by Xandros, Inc., a former competitor, and made a semi-independent subsidiary of the company.
Lindows, Inc. was founded in August 2001, by Michael Robertson with the goal of developing a Linux-based operating system capable of running major Microsoft Windows applications. It based its Windows compatibility on the Wine API compatibility layer. The company later abandoned this approach in favor of attempting to make Linux applications easy to download, install and use. To this end a program named "CNR" was developed: based on Debian's Advanced Packaging Tool, it provides an easy-to-use graphical user interface and a slightly modified package system for an annual fee. The first public release of Linspire was version 1.0, released in late 2001.
In 2002, Microsoft sued Lindows, Inc. claiming the name "Lindows" constituted an infringement of their "Windows" trademark. Microsoft's claims were rejected by the court, which asserted that Microsoft had used the term "windows" to describe graphical user interfaces before the Windows product was ever released, and that the windowing technique had already been implemented by Xerox and Apple Computer many years before. Microsoft sought a retrial and after this was postponed in February 2004, offered to settle the case. As part of the licensing settlement, Microsoft paid an estimated $20 million, and Lindows, Inc. transferred the Lindows trademark to Microsoft and changed its name to Linspire, Inc.