emens, for example, had a strong home base to pre- serve, and a symbiotic relationship with its home PTT. Western Electric's close relationship with AT&T was not without contro- versy. For much of its history, it had several nontelephone product lines. For example, many motion pictures from the first three decades of "talkies" were made using Western Electric sound equipment; the company was also a major manufacturer of radio broadcast transmitters. But the federal government brought an antitrust case against it in 1949. Settled in the 1956 consent decree known (ironically) as the "Final Judgment" (FJ), Western Electric became sub- ject to new restrictions on its business. It could still provide services to the fed- eral government, and could still provide equipment to its Bell System affiliates, but it was no longer allowed to compete in most other areas [1]. Its interest in Canada's Northern Electric (now Nortel Networks) was also sold. It is a curious coincidence that the case leading to the original Final Judg- ment began the year that AT&T's monopoly was extended to prevent even pri- vate microwave competition and ended the year of the Hushaphone decision. With the AT&T monopoly at its zenith of power, its manufacturing arm was isolated from the normal ebb and flow of competitive business; the FJ simply confirmed Western Electric's role as part of a vertically integrated monopoly, whose scope, while broad, was not unlimited. AT&T Kept Out of the Computer Industry The computer industry was not well developed by 1956, of course; it was being revolutionized by the introduction of the transistor, itself a Bell Labs invention. But as a result of the Final Judgment, AT&T and its manufacturing arm were not allowed to participate. Teletype Corporation, another AT&T subsidiary, did for a time have a major share in the market for computer terminals, but those products were nominally designed for use as telegraph (Telex and its coun- terpart TWX) machines. And attempts to expand into more advanced termi- nals, or termi