Copyright Infringement Lawsuit Against SWFTE Settled

Mountain View, Calif., (September 18, 1995) (Nasdaq: ADBE) - The parties to
the lawsuit commenced in May 1993 by five computer font software companies
(Adobe Systems Incorporated, Bitstream Inc., Emigre Graphics, Inc.,
Fontshop Canada Ltd., and Q.E.D. Publishing Company) against SWFTE
International Ltd. for copyright infringement of their font software
programs announced today that they had reached a mutually acceptable
resolution of the lawsuit. SWFTE has agreed to pay an undisclosed sum to
the plaintiffs. The plaintiffs affirmed their belief that font software is
entitled to copyright protection, like any other software. SWFTE
acknowledged its acceptance and agreement with the U.S. Copyright Office
rulings permitting the registration of copyright in certain computer
programs used in the generation of digitized representations of typeface
designs in the same manner as other programs, and in fact has filed for
registration of copyright for portions of its font software products. The
plaintiffs acknowledge that SWFTE has modified its procedures for
generating font software to a method that clearly is noninfringing. The
litigation did not address the protectability of typeface designs as such.
The parties have agreed to keep all other settlement terms confidential.
Adobe Systems Incorporated, founded in 1982, is headquartered in Mountain
View, California. Adobe develops, markets and supports computer software
products and technologies that enable users to create, display, print and
communicate electronic documents. The company licenses its technology to
major computer, printing and publishing suppliers, and markets a line of
application software and type products for authoring visually rich
documents. Additionally, the company markets a line of powerful, but easy
to use, products for home and small business users. Adobe has subsidiaries
in Europe and the Pacific Rim serving a worldwide network of dealers and
distributors. Adobe's 1994 revenue was approximately $598 million.
 
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