From: jim@Tadpole.COM (Jim Thompson)
Date: Tue, 14 Dec 93 01:53:50 PST
To: cypherpunks@toad.com
Subject: PKP, DSS and USGVMT
Message-ID: <9312140953.AA00824@chiba.tadpole.com>
MIME-Version: 1.0
Content-Type: text/plain


 Date: Mon, 13 Dec 1993 20:26:42 -0500
 From: srctran@world.std.com (Gregory Aharonian)
 To: patents@world.std.com
 Subject: Software patent holds up $1 billion network buy
 
 
      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