Re: CRIME Troubles at Foundstone

From: Zot O'Connor (zot@private)
Date: Mon Jun 16 2003 - 22:41:24 PDT

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    More important from the Article.  Many might not remember J.D. but he
    was very active in CRIME previous to joining Foundstone:
    
    ....
    
    Foundstone's troubles began last October when the company brought a
    trade-secrets case against J.D. Glaser, its former director of
    engineering, accusing him of stealing proprietary code. Glaser had left
    Foundstone in May to reactivate his old company, NT Objectives. After
    ten staffers followed him, Foundstone got a temporary restraining order
    barring Glaser from marketing his software. But a judge declined to
    grant an injunction, saying that Foundstone had not identified the trade
    secret and was unlikely to prevail on the merits. 
    ...
    
    In most industries such a dispute would have been routine. But the
    computer-security industry prides itself on being an open-source
    community that shares innovations. That much is clear from Kurtz and
    McClure's bestselling book, Hacking Exposed, perhaps the most detailed
    account ever written of how to hack--and defend--popular computer
    networks and software. 
    
    Things quickly went from bad to worse. Soon after the case was filed,
    Jason Glassberg, Foundstone's software-consulting guru and its key
    contact with Microsoft, the company's largest client, sent an e-mail to
    Kurtz. "This is bullshit," he wrote. "We will regret the day we became a
    litigious company. You realize you have zero support from the rest of
    the company on this action, don't you?" 
    
    Kurtz promptly fired Glassberg, who was immediately offered work by
    Microsoft. The software giant then yanked its Foundstone business, which
    had accounted for about a quarter of the company's revenue. More staff
    defections followed. "Most of the people I know who work at Foundstone
    are looking for jobs elsewhere," says Jeff Moss, who runs the BlackHat
    computer-security conferences. 
    
    Despite losing its bid for an injunction against Glaser, Foundstone is
    still pursuing the case in arbitration--a decision that sparked the
    piracy allegations, which will now make the case even more difficult to
    win. "How can you have a trade secret when your product was built on
    software that didn't belong to you?" asks Glaser. Saumil Shah, a former
    Foundstone employee and a highly regarded technical expert, says Kurtz,
    McClure, and Bahadur were involved: "There is absolutely no denying that
    they committed piracy. They did that knowingly and in huge volume." 
    ...
    
    In March, Foundstone asked an arbitration judge to seal evidence of
    software piracy presented by Glaser. The company said it would preserve
    its records. But in early April, Kurtz called a staff meeting. "Don't do
    anything with your software," Kurtz says he told his employees. Then he
    made his next move clear: "If there's anything that's not in compliance,
    we'll get it addressed. We get the license, or we delete it." Foundstone
    lawyers say some software has since been deleted from the company's
    servers, but maintain that anything deleted would still be on backup
    tapes. 
    
    
    ...
    
    
    Ahhh, JD Still in trouble :)
    
    
    
    On Wed, 2003-06-11 at 19:27, Andrew Plato wrote:
    > Oh oh - Foundstone accused of stealing software, ideas, etc. 
    
    > See rest:
    
    http://www.fortune.com/fortune/technology/articles/0,15114,457276,00.html
    
    
    -- 
    Zot O'Connor
    
    http://www.ZotConsulting.com
    http://www.WhiteKnightHackers.com
    



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