[ISN] RSA Sues Network Associates

From: mea culpa (jerichoat_private)
Date: Thu May 21 1998 - 14:31:53 PDT

  • Next message: mea culpa: "[ISN] Edupage Editors: Edupage, 21 May 1998"

    Forwarded From: Kjell Wooding <kwoodingat_private>
    RSA sues Network Associates 
    By Tim Clark
    Staff Writer, CNET NEWS.COM 
    May 20, 1998, 2:40 p.m. PT 
    URL: http://www.news.com/News/Item/0,4,22347,00.html 
    RSA Data Security is seeking to bar Network Associates from shipping any
    Trusted Information Systems software that uses RSA encryption technology. 
    Earlier this year, Network Associates acquired TIS, licensed by RSA to use
    its encryption algorithms in TIS virtual private network software. RSA is a
    wholly owned subsidiary of Security Dynamics. 
    The latest copyright infringement suit, filed May 13 in U.S. District Court
    in San Francisco, is the second between RSA and Network Associates. Network
    Associates acquired longtime RSA rival Pretty Good Privacy last year and
    inherited the long-running PGP-RSA litigation. 
    RSA's latest suit appears to be in part a tactic in settlement talks over
    the PGP suit, which resume May 28. A separate arbitration hearing is
    scheduled for October. RSA and Network Associates have been negotiating a
    settlement of the PGP case for months, with the price tag still a stumbling
    "RSA is a company based on intellectual property," said Paul Livesay, RSA's
    general counsel. "Right now we perceive Network Associates as having an
    approach to doing business by acquiring companies and ignoring third-party
    agreements, so why would we want to assign the license to TIS to a party
    that operates in that manner?" 
    Livesay said the agreement with TIS included specific language to cover
    assigning the license in the event of an acquisition. 
    "RSA was not in a position to assign [the TIS license] to Network
    Associates, given the other infringement," he added, acknowledging that the
    latest suit would be a discussion point in any settlement talks around the
    PGP litigation. 
    "We are confident that we will be able to ship all our products," said
    Peter Watkins, general manager for Network Associates' security products,
    saying the suit only addresses its virtual private network (VPN) software.
    "We will continue discussions and settlement discussions with RSA on other
    matters. We expect to reach resolution." 
    Watkins said his firm will track sales of the VPN software that uses RSA
    technology to pay accrued royalties once the dispute is settled. Network
    Associates has requested a new licensing contract with RSA for that product. 
    The lawsuit may kill the already-shaky Secure One interoperability alliance
    involving RSA, Security Dynamics, VeriSign, and McAfee Associates, which
    merged last year with Network General to form Network Associates. 
    Network Associates said in January that SecureOne remained in its plans.
    But the company, still McAfee at the time, never dropped its desktop
    encryption product as it had said it would when the alliance was formed. In
    fact, it now sells PGP's desktop encryption software. 
    On June 18, Judge William Orrick is slated to hear RSA's request for a
    preliminary injunction to stop Network Associates from shipping certain TIS
    Subscribe: mail majordomoat_private with "subscribe isn".
    Today's ISN Sponsor: Repent Security Incorporated [www.repsec.com]

    This archive was generated by hypermail 2b30 : Fri Apr 13 2001 - 12:54:13 PDT