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at the U of Berkeley students improved AT&T's UNIX codebase
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whoever ran the code had to purchase a $260.000 license from AT&T
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US mulitary wanted to consolidate the computer projects they funded to use only one platform/OS
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BSD Unix won over VMS
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DARPA funded development of BSD (multi million dollar)
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also funded a separate entity to implement the new network stack TCP
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the people at Berkeley did TCP anyway (for free), because they thought they can do better, which turned out to be true
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released the network code to the public under the newly created BSD license (pay $1000 to get a tape and a piece of paper or just download for free)
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Bill Joy was leading the team
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he also invented vi
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later released a full BSD-licensed system to the public
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"write a utility and get your name in the light"
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were sued by AT&T and settled (well, won)
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Joy left and help founding Sun Microsystems at Stanford
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FreeBSD, Darwin, Mac OSX, IOS(?) are all derived from BSD
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the TCP code developed at Berkeley is in even more devices and OSes (including MS products)