It's the same "phenomenon" described by Hertzfeld here: http://folklore.org/StoryView.py?story=Reality_Distortion_Fi...
That said, this story is about an invention that Steve Jobs _doesn't_ take credit for. It's another example of how Isaacsons biography gets simple facts wrong by simply quoting people without doing research (just like the NeXT quote by Bill Gates discussed earlier).
Also, I think Steve Jobs comes off as belittling the accomplishments of Woz here, by saying that the power supply was just as revolutionary as the logic board, which apparently is clearly false.
really?
In terms of IP law, it's actually quite reasonable.
for example, the spinning beach ball is patented... I think we have passed the point where "patented" has anything to do with what people think of as "invention"
[Edit: Jony Ive describes this in chapter 26 of the biography. See folklore.org for more examples.]