According to the oral history of Tom Rolander (VP of engineering at DRI, he was in the famous IBM meeting), IBM wanted to call CP/M-86 "PC-DOS" and pay a one-time licensing fee, but DRI said they had to keep it as CP/M-86 and pay a per-device royalty. About a month after the meeting, Rolander heard through the grapevine that IBM had licensed QDOS instead of CP/M-86 for their operating system. Kildall informed IBM that he was already aware of QDOS and was preparing a lawsuit against SCP because he believed it to be an illegal CP/M clone. To defuse the situation, IBM promised that they wouldn't bundle an OS with the PC, would offer PC-DOS, CP/M-86, and UCSD P-System alongside the PC, and would pay the royalties up front for some large number of copies of CP/M-86. The condition was that DRI wouldn't sue IBM or Microsoft over the similarities between QDOS and CP/M. When the PC was released, Kildall and Rolander discovered they had been double crossed:

> So we got the notice about the rolling out and all the rest of that, and so as Gary and I were want to do, we flew up to San Jose and took a cab over to the IBM store, and we came in the store, and sure enough there was the IBM PC sitting there, and here were the three boxes of the operating system. And we looked at this and the IBM PC-DOS was priced at $40, and then over here was CP/M and it was priced at I’m pretty sure it was $260. It was more than $200 above PC-DOS, and I don’t even remember what the UCSD P-System was. But we looked at that and I’ve never had my face slapped in my life, but I know what it would feel like to have my face slapped. It was such an unexpected thing. I mean we had totally assumed that this was going to be a level playing field, that PC- DOS was going to be priced the same as CP/M, the same as the UCSD P-System, and that we were going to let the market, the users decide which one, which clearly it wasn’t. And Gary described that day later on in his memoirs as kind of the day innocence was gone.

Here's a link to the full oral history if you're interested: https://archive.computerhistory.org/resources/access/text/20...