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Date: Sun, 19 Dec 1993 12:56:51 +0200 (WET)
From: ygoland@SEAS.UCLA.EDU
Subject: File 4--Software patent holds up $1 billion network

Forwarded message:
From league-tactics-request@ai.mit.edu Sat Dec 18 21:09:55 1993
From--friedman@gnu.ai.mit.edu (Noah Friedman)

     A billion dollar DoD procurement for a new communications network
maybe running into problems because of software patents dealing with
encryption.  The Defense Message System network will serve nearly one
million users, and will replace a existing global Defense network.
The project, being managed by the Air Force Standard Systems Center,
will be a billion-dollar boost for the C/C++ COTS industry, with
companies such as Microsoft, Lotus, ATT, and MCI planning to bid on
the project.

     Unfortunately, the encryption technology planned for use in the
DMS network is the subject of a long-running battle between the
government and Public Key Partners (PKP).  PKP claims that the
proposed Digital Signature Standard (DSS) put forward by the National
Institute of Standards (NIST) in 1991 infringes on public-key patents
held by RSA Data Security and Prof.  Claus Schnorr, both represented
by PKP.

     Last summer the Commerce Department, after two years of
unsuccessfully dealing with the legal challenges of PKP's software
patents, said it would hand over an exclusive license for DSS to PKP.
But over one hundred companies condemned the plan as illegal, and NIST
backed off.  The deal was also opposed by the European Community and
the Canadian government.  The deal would allow PKP to charge $1 for
each public-key certificate issued using DSS.

     As of last week, the DoD was not prepared to say whether the
procurement would be delayed by the patent problem.  Negotiatons
between PKP and the Commerce Department are still underway.

     For information, see an article in December 15, 1993 issue of
Network World, page 4, on the patent issues, and an article in the
November 1 edition of Federal Computer Week, page 2, for an article on
the DMS procurement.

============================
Greg Aharonian
Internet Patent News Service


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