Here's an article on the RSA-Cylink arbitration from the business wire. --Bob Baldwin - ----------------------------- RSA Prevails In Arbitration Against Cylink REDWOOD CITY, Calif.--(BUSINESS WIRE)--Sept. 19, 1995--An Arbitration Panel recently ruled that Cylink does not have a license to RSA patented technology, that RSA's software licensing practices do not breach any agreement with Cylink or its wholly owned subsidiary Caro-Kann and that RSA now has the exclusive right to license the RSA patent. In a Sept. 6, 1995 ruling, an Arbitration Panel, formed by agreement of the parties, and after nearly a month of testimony, ruled in favor of RSA on every significant issue. The Panel held that neither Cylink nor Caro-Kann had a license to practice RSA patented technology. Cylink admittedly incorporates this technology in its Secure X.25 product line, without any license to do so. The Panel also found that RSA's software licensing practices did not materially breach any of Cylink's rights. The Panel did not rule that anyone, (specifically including RSA and its software customers) infringed any existing patent rights of anyone - including Cylink. As a result of the Panel's ruling, RSA now has the exclusive right to license the patented RSA technology. According to Jim Bidzos, the President of RSA, `RSA will continue to conduct its software business in exactly the same way that it has for the past ten years. `In addition, RSA anticipates that licenses to the RSA Patent will now be much more readily available, because they now can now be granted without Cylink interference. RSA has all of the intellectual property rights which it needs to license its software. RSA will vigorously defend against any claim to the contrary.` A recent Cylink press release on the Ruling of the Arbitration Panel is wildly inaccurate. The same Robert Fougner (Cylink's General Counsel) who is cited in the Cylink press release has repeatedly made express representations to third parties that the Stanford Patents do not cover, and are not infringed by, the manufacture, use or sale of products incorporating RSA's TIPEM software developer's toolkit. As noted by Mr. Bidzos: `Cylink lost every single significant issue in the Arbitration. Their press release was simply an attempt to cover up what has been a crushing defeat.` Questions regarding the Arbitration Panel Ruling or RSA licenses should be directed to Kurt Stammberger, RSA Technology Marketing Manager, or Paul Livesay, RSA Director of Legal Affairs. CONTACT: RSA Kurt Stammberger, 415/595-8782 kurt@rsa.com