From: “baldwin” <baldwin@RSA.COM (Robert W. Baldwin)>
To: cypherpunks@toad.com
Message Hash: 7fa7cb32f08e10d6f8797b64d268ba15ddbddb887956c6d6e0ca4e0af7ff0cb5
Message ID: <9602088263.AA826308428@snail.rsa.com>
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UTC Datetime: 1996-03-08 20:02:48 UTC
Raw Date: Sat, 9 Mar 1996 04:02:48 +0800
From: "baldwin" <baldwin@RSA.COM (Robert W. Baldwin)>
Date: Sat, 9 Mar 1996 04:02:48 +0800
To: cypherpunks@toad.com
Subject: News on RSA vs. Cylink Injunctions and Patents
Message-ID: <9602088263.AA826308428@snail.rsa.com>
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The following press release from RSA may be of interest to the
folks on this list.
--Bob
-----------------------------------
Subject: NEWS: Cylink loses in attempt to enjoin RSA licensing
REDWOOD CITY, Calif.--(BUSINESS WIRE)--March 8, 1996--In a ruling filed
March 4, the Honorable Spencer Williams, U.S. District Court Judge for the
Northern District of California, denied Cylink Corporation's motion seeking
an injunction against RSA Data Security, Inc.'s licensing of its
BSAFE/TIPEM toolkit software.
Cylink contends that RSA's software infringes its Stanford patents and that
licensing required an additional grant from Cylink, despite
the fact that RSA already has a license. After hearing oral arguments on
Feb. 29, Judge Williams denied Cylink's motion from the bench and later
issued a written order explaining that "several factors weigh against
finding that (Cylink) has shown a likelihood of success on
the merits."
In denying the motion the court found that "RSA has raised serious question
(sic) regarding the validity of the first of the Stanford patents, the
Diffie-Hellman patent." With respect to Cylink's other patent, the
Hellman-Merkle patent, the court had this to say: "(I)t is questionable
whether the patent warrants such broad coverage." Thus, Cylink has "failed
to demonstrate a likelihood of success on the merits."
RSA had initiated the lawsuit against CKC, a wholly
owned subsidiary of Cylink, because CKC was threatening RSA's customers in
an effort to induce them to purchase sublicenses to the Stanford patents.
RSA's action seeks a court determination that the patents are invalid, not
infringed and/or RSA's licensing does not exceed its existing rights under
the patents. Cylink/CKC responded by filing its motion for preliminary
injunction which was denied by the court as described above.
In a related matter, the arbitration panel which is handling the winding up
and dissolution of Public Key Partners ("PKP"), the entity that formerly
held the licensing rights to the MIT and Stanford patents, ruled that: "In
addition to the claims discussed above and in our prior rulings, Cylink
presented the claim, but did not prove, that RSA breached its fiduciary
duty to PKP by providing patent licenses to third parties." The
arbitration panel also found that PKP was obligated to reimburse RSA for
the costs and attorney's fees incurred in other related litigation,
including a patent lawsuit brought by Cylink to invalidate the MIT patent.
"The court confirmed that RSA has existing rights to the Stanford patents,
and although Cylink knew this, it has forced RSA to investigate. In that
process, we have found a number of disturbing facts about the Stanford
patents," said Jim Bidzos, president of RSA. He went on to add: "Cylink's
losing its motion is likely only a surprise to Cylink who thinks they can
achieve through the courts what they haven't been able to accomplish in the
marketplace."
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