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