Other rival companies, Corona Data Systems, Eagle Computer, and the Handwell Corporation were threatened with legal action by IBM, who settled with them. Columbia Data Products built the first clone of the IBM personal computer, the MPC 1600 by a clean room reverse-engineered implementation of its BIOS.

This was facilitated by IBM's choice of commodity hardware components, which were cheap, and by various manufacturers' ability to reverse engineer the BIOS firmware using a ' clean room design' technique. These 'clones' duplicated almost all the significant features of the original IBM PC architectures. Later, the term was primarily used in contrast to Apple's Macintosh computers. The term was initially in contrast to the variety of home computer systems available in the early 1980s, such as the Apple II, TRS-80, and Commodore 64. The designation 'PC', as used in much of personal computer history has not meant 'personal computer' generally, but rather an x86 computer capable of running the same software that a contemporary IBM PC could. The term 'IBM PC compatible' is now a historical description only, since IBM no longer sells personal computers. Such computers were referred to as PC clones, or IBM clones. IBM PC compatible computers are similar to the original IBM PC, XT, and AT that are able to use the same software and expansion cards.

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