From: schneier@chinet.chi.il.us (Bruce Schneier)
Subject: RSA liscenses
Organization: Chinet - Public Access UNIX
Date: Fri, 20 Nov 1992 17:05:22 GMT

This is being posted for Mike Markowitz.  Address all responses to him at:
     0003631959@mcimail.com



                       -----------------------------

hal.gnu.ai.mit.edu) asks:

> I'm interested in getting in touch with PKP about the distribution 
>of RSA licenses, but I don't have any information about them to get in
>touch -- address, phone number, or even examples of how they conduct
>the licensing process -- by flat fees or by royalties.  
> Thanks in advance.

Funny you didn't see any of the full page ads RSADSI was running along
about the time the DSA was introduced.  They've had quite an impact, I'm
told.  ;)

You might want to contact:

    Mr. Robert Fougner   408 735-5893  (Fax: 408 735-6642)
    Director of Licensing
    Public Key Partners
    310 North Mary Avenue
    Sunnyvale, CA  94088

But be patient and don't thank me in advance.  Our attorney wrote them
regarding a license in March 1991 (within 5 days of receipt of a cordial
threat), then again in April and July.  Mr.  Fougner is an important and
busy man but he did finally respond in November.  It took until the
following February to receive the "standard license agreement." We're
still negotiating...

But remember, PKP has never, I repeat *NEVER* denied a commercial
license to anyone.  (Well maybe just once, Robert?  Way back in '88 or
'89?  Remember now?  Just after an insignificant little lawsuit that
only took a year to settle?)

The "standard agreement" is anything but.  Examples of their licensing
process?  Ask about their agreements with Microsoft, Lotus, IBM, etc.
While you're at it, ask to see their agreement with MIT--after all you
should be assured that they *have* the legal right to sublicense the RSA
algorithm.  (Better yet, go over to their legal liason on campus.
Sorry, the freedom of information act doesn't apply to MIT.  You can,
however, find organizations who are very good at using it to harrass the
federal government.)  Okay, you'll just have to trust them.

Another point of which you should be aware:  PKP is extremely interested
in protecting Fischer International's monopoly in the under-$1000
market.  After all, Fischer has exclusive marketing rights to MailSafe.
So I hope you don't plan on marketing a cheap software
product--certainly not one in the $75-$250 range.  Since minimum
royalties are a firm $20 per package, you can forget about finding a
distributor.  Don't consider cutting a large customer a good deal on a
site license--especially if you are bidding against Addison.

If, OTOH, your plan is to compete with Notes, you might find them more
receptive.  The rates aren't too bad once you get your product up into
the $100,000 range.

Yes, RSAREF is free for non-commercial use.  We are very grateful.  Can
you say "DARPA" boys and girls?

Good luck.

 Digital Signature
    (the other developer of public key products--currently only selling
    to the U.S. Federal Government since only they have rights to
    polynomial evaluation over a ring and Fermat's Little Theorem.)

Newsgroups: sci.crypt