[ISN] Network Associates discontinues PGP encryption software

From: InfoSec News (isnat_private)
Date: Thu Mar 07 2002 - 23:51:24 PST

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    Posted on Thu, Mar. 07, 2002     
    NEW YORK (AP) - Software company Network Associates has stopped
    selling PGP, the most widely used software for e-mail encryption,
    after failing to find a buyer for the technology, a spokeswoman said
    PGP, or Pretty Good Privacy, is available free online for personal
    use, a major reason the company saw little future in trying to make a
    business of selling the software for corporate use, said spokeswoman
    Jennifer Keavney.
    ``It is the leading encryption technology out there, but it's all
    based on free downloads,'' she said.
    The software allows users to send and receive encrypted e-mails that
    can only be decoded by their intended recipients.
    Network Associates laid off 18 employees last week when the PGP
    division was dismantled. Most of the division's employees had already
    been transferred to other parts of the company.
    The layoffs were first reported on the Infoworld magazine's Web site.
    The Santa Clara, Calif., company announced in October that it was
    looking for a buyer to take PGP off its hands. Keavney said the
    company received several offers, but none was attractive enough.
    Part of the problem was that PGP encryption technology is used in a
    number of other Network Associates products and the company needed to
    maintain rights to use the technology even if it was sold to another
    company, she said.
    Network Associates will continue to fix bugs in the program for one
    year, and will provide support for customers until the expiration of
    the support contracts.
    PGP is the creation of software engineer Phil Zimmerman, who released
    it as ``freeware'' in 1991. He sold the commercial rights to Network
    Associates in 1997.
    On The Net:
    Network Associates: http://www.nai.com
    MIT's PGP page: http://web.mit.edu/network/pgp.html
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