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KDE stands for K Desktop Environment, a project which started as a clone of CDE (Common Desktop Environment), one of the first (commercial) desktop environments for the X Window System (X11R6 X Window System Version 11 Release 6), which is the standard window system for Unix-like operating systems. KDE inherited a lot of ideas from Windows and MacOS.
There is another free desktop environment for X11 called Gnome. It is very similar to KDE, and the main reason why the Open Source movement felt the need for another one is that KDE uses code which is not published under the GPL (General Public License), which is seen as a threat to the GNU project.
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