FBI Raids Major Ohio Computer Bulletin Board Action Follows Joint
Investigation With SPA

February 1, 1993 (Washington, DC)- The Federal Bureau of Investigation on
Saturday, January 30, 1993, raided "Rusty & Edie's," a computer bulletin
board located in Boardman, Ohio, which has allegedly been illegally
distributing copyrighted software programs. Seized in the raid on the
Rusty & Edie's bulletin board were computers, hard disk drives and
telecommunications equipment, as well as financial and subscriber
records.

For the past several months, the Software Publishers Association ("SPA")
has been working with the FBI in investigating the Rusty & Edie's bulletin
board, and as part of that investigation has downloaded numerous
copyrighted business and entertainment programs from the board. The SPA
investigation was initiated following the receipt of complaints from a
number of SPA members that their software was being illegally distributed
on the Rusty & Edie's BBS.

The Rusty & Edie's bulletin board was one of the largest private bulletin
boards in the country. It had 124 nodes available to callers and over
14,000 subscribers throughout the United States and several foreign
countries. To date, the board has logged in excess of 3.4 million phone
calls, with new calls coming in at the rate of over 4,000 per day. It was
established in 1987 and has expanded to include over 19 gigabytes of
storage housing over 100,000 files available to subscribers for
downloading. It had paid subscribers throughout the U.S. and several
foreign countries, including Canada, Luxembourg, France, Germany, Finland,
the Netherlands, Spain, Sweden and the United Kingdom.

A computer bulletin board allows personal computer users to access a host
computer by a modem-equipped telephone to exchange information, including
messages, files, and computer programs. The systems operator (Sysop) is
generally responsible for the operation of the bulletin board and
determines who is allowed to access the bulletin board and under what
conditions.

For a fee of $89.00 per year, subscribers to the Rusty & Edie's bulletin
board were given access to the board's contents including many popular
copyrighted business and entertainment packages. Subscribers could
"download" or receive these files for use on their own computers without
having to pay the copyright owner anything for them.

"The SPA applauds the FBI's action today," said Ilene Rosenthal, General
Counsel for the SPA. "This shows that the FBI recognizes the harm that
theft of intellectual property causes to one of the U.S.'s most vibrant
industries. It clearly demonstrates a trend that the government
understands the seriousness of software piracy." The SPA is actively
working with the FBI in the investigation of computer bulletin boards, and
similar raids on other boards are expected shortly.

Whether it's copied from a program purchased at a neighborhood computer
store or downloaded from a bulletin board thousands of miles away, pirated
software adds to the cost of computing. According to the SPA, in 1991, the
software industry lost $1.2 billion in the U.S. alone. Losses
internationally are several billion dollars more. "Many people may not
realize that software pirates cause prices to be higher, in part, to make
up for publisher losses from piracy," says Ken Wasch, Executive Director
of the SPA. In addition, they ruin the reputation of the hundreds of
legitimate bulletin boards that serve an important function for computer
users."

The Software Publishers Association is the principal trade association of
the personal computer software industry. Its over 1,000 members represent
the leading publishers in the business, consumer, and education software
markets. The SPA has offices in Washington, DC, and Paris, France.

Software publishers Association
1730 M St, Northwest, Suite 700, Washington, D.C. 20036
202-452-1600,  Fax: 202-223-8756

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