From: Robert Hettinga <rah@shipwright.com>
Date: Wed, 14 May 1997 01:28:48 +0800
To: cypherpunks@toad.com
Subject: PGP Prestidigitizes RSA...
Message-ID: <v030209bbaf9e396fd9c9@[139.167.130.246]>
MIME-Version: 1.0
Content-Type: text/plain


To paraphrase the cypherpunks maxim: "Cypherpunk fellow-travellers hack
corporations"...

Cheers,
Bob Hettinga

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MIME-version: 1.0
X-MIME-Autoconverted: from quoted-printable to 8bit by listserv.aol.com id
                      LAA18484
Date:         Tue, 13 May 1997 11:03:31 -0500
Reply-To:     Law & Policy of Computer Communications
              <CYBERIA-L@LISTSERV.AOL.COM>
Sender:       Law & Policy of Computer Communications
              <CYBERIA-L@LISTSERV.AOL.COM>
From:         "Kevin J. Connolly" <kconnolly@EVW.COM>
Subject:      Re: Encryption--RSA v. PGP
To:           CYBERIA-L@LISTSERV.AOL.COM

-----BEGIN PGP SIGNED MESSAGE-----

There are several additional bits and pieces to report.

First, RSA is not seeking to enjoin the distribution of PGP products.  The
lawsuit is seeking solely to revise the royalties to be paid.

Second, it can be said that the suit represents something of a stretch.
RSA (the original patent holder) assigned the patent to Public Key
Partners, whose membership consists of RSA Data Security, Inc. and
Cylink Corporation.  Public Key Partners had granted a license to
ViaCrypt, Inc., which was acquired by Lemcom, Inc.  Then Pretty Good
Privacy, Inc. acquired Lemcom and performed a reverse subsidiary
merger, with Lemcom as the surviving entity.  Lemcom then changed its
corporate style to (surprise!) Pretty Good Privacy, Inc.  Cylink--the other
half of Public Key Partners-- was not consulted before RSA purported to
terminate the license and sue PGP.

Third, It appears that one major reason for RSA's purported termination
of the license agreement was to get around the very broad arbitration
clause in the license agreement.

Finally, it appears that RSA commenced the suit in reaction to PGP's
development of algorithm-independent encryption.  This innovation would
make it possible for PGP to embrace not only the RSA Algorithm but also
Diffy-Helman, El Gamal (a variant of Diffy-Helman), elliptical curve
cryptography or even n-dimensional lattice vector schemes.  In the
meantime, however. PGP continues and will continue to incorporate the
RSA algorithm, if for no other reason than downward compatibility and
the need to continue to support the significant number of existing
RSA-based keypairs.

It should be noted that any bias apparent in this posting stems from the
failure of RSA's counsel to return my calls, even though I identified
myself and the fact that I am preparing an article for print in a significant
news weekly (which I will not identify until and unless the article actually
runs).  However, I did identify the publication to RSA's counsel, and he
chose to let me get my information from PGP, Cylink, and other industry
sources.

Kevin J. Connolly

The opinions expressed in this communication are those of the author,
not of Eaton & Van Winkle.
This communication is not legal advice.  If it were legal advice, it would
be accompanied by an invoice.
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-----------------
Robert Hettinga (rah@shipwright.com), Philodox
e$, 44 Farquhar Street, Boston, MA 02131 USA
"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'
The e$ Home Page: http://www.shipwright.com/