-

I 

/ 

, 

, 

Mr. Richard Uion 

RO development company 

P.O. box 898 

Bradfor, VT 05033 

Uear Mr. Dion: 

JOHN BYRN E 

DESIGN CONSULTANT 

P.O. Box C • Al. 25 

EAST CORINTH, VERMONT 05040 • 802·439-6173 

March 8, 1991 

Perhaps you woul d like to read the enclosed information 

about CHAOCIPHER before our meeting on Tuesday morning. 

It is excerpted from some material written recently by 

my nephew. 

I hope this letter finds you fully recuperated from your 

recent bout with the flu . 

Sincerely, 

John Byrne 
' .. 

' " CHAOCIPHER THE 

ULTIMATE ELUSJON 

Q. What form of_ input does the cryptosystem accept? [For 

example, an English lan9tJage stream, or arbitrary binary 

data. ) What torm of output does it produce? 

A. In its original form (in the '30s, well before the 

computer age), CIUU)CXPBBR was implemented in mechanical form. 

Like tnany "el.egant" ideas, thia waa a simple mechanism but 

relativel.y crudely built. It was restricted to the 26 ietters 

of the ~glish alphabet. (Grandpa knew nothing of computers, 

as you might well guess ... and no one else did, either.) 

N?w~ the CBAOCIPBER is enhanced. It will accept input in any 

digital form. The data may be textual, or binary. CBAOCIPllBR. ~reduces a binary output file exactl y the same size as it's 

input. 

Q. What size restrictions are there on the data that can be 

encrypted? [For example, any arbitrary bit stream, or data 

that contains a multiple of 10 characters?] 

A. There are no restriction . CBAOCIPBBR encrypts data on a 

byte for byte basis. This means, of course, that the former 

restriction to the alphabet are lifted, and all 256 

combinations ot binary data in 8-bit bytes are valid, both as 

input and output. Furthermore, characters to be encrypted do 

not have to be grouped, or in any way ordered. Additionally, 

files to be encrypted may be compressed if desired, before or 

after encryption, using ANY compression technique. 

CUAOCt:PHBR does not, itse1f, perform compression . It merely 

accepts character input data and yields character output data. 

Q. Is the output produced by encrypting some data the same 

size as the data? 

A. Yes. In its present form, CBAOCIPHER produces an output 

which is exactly the same size as the input. CBAOCIPBBR may additionally contain a modicum of "accounting" information (s

uch 

as the date/time of encryption). This "accounting" information 

increases the size of the output file by exactly 9 bytes. The 

inclusion of "accounting" information is not essential, and may 

be considered optional. 

Here are additional characteristics of CBAOCIPBBR: 

o CHAOCIPBBR is presently implemented in MS/PCDOS systems:. 

It could easily be converted to run on any platform. Xn the 

DOS environment, CBAOCXPllKR actually overwrites the original 

tile, using the same disk blocks, with the encrypted tile. 

Since the output file is the same size as the input file, this 

enhances the security of the process. CBAOCIPBBR additionally 

sets tile attributes so that the encrypted files are "hidden" 

from casual users. 

o CBAOCIPBBR is FAST! It has been compared to other 

encryption systems, and is among the fastest (if not THE 

fastest) for both encryption as well as decryption. When 

tested on a TANDY 1000 {8088 at 4mhz) the 

encryption/decryption rate was approx. 10,000 bits per second. on a TANDY lOOOTX (80286 at 8mhz), the rate was 26,200 bits 

per second. On a DEC Rainbow lOOA (8088 at 4mhz) the rate is 

8218 bits per second. The CBAOCIPBB.R program is not yet 

optimized, and speeds greater than the above may well be 

realized. Obviously, faster cpu/disk performance than those 

tested will result in improved performance . Mr. Deavours will 

complete performance testing on other DOS platforms in the 

near future. 

o CBAOCXPBBR ia SECURE. It has NEVER been compromised, and 

according to Mr. Oeavours, is perhaps the most secure 

algorithm currently available. 

o CBAOCIPBER could quite simply be embedded in other 

operating systems to provide fast, real time, 

encryption/decryption of any data stream. 

John Byrne 

P.O. Box C E. Corinth , VT 05040 

(802) 439-6173 

• 
AGREEMENT 

" oy and between 

John Byrne 

and 

RD development company 

Whereas the aforementioned parties desire to enter into an agreement 

to produce, market, and sell a computer softwear package for data 

encryption implementing the concept currently known as CHAOCIPHER 

and specifically excluding any source code, John Byrne (JB) of 

East Corinth, VT and RO development company (RD) of Bradford VT 

a Delaware corporation so agree to the following: 

1, that HO will have the exclusive world-wide marketing and 

distrioution rights of the softwear package currently titled CHAOCIPHER; 

2. that JS will ~rovide to RD all upgrades, fixes, current 

revision{s) deemed necessary by both parties on a timely basis on written request from RU for corrections/ fixes/ 

bugs. "Timely" to be agreed upon and dependent on the nature 

of the project(s); 

3. that kO wil l retain 20% of net sales, that JB will receive 80% 

of net sales (net sales is defined as that balance of monies 

after costs and expenses associated with the prutection, pro- duction, marketing, sales, and support of the product); distribution of proceeds to JB will ~e on a quarterly basis; 

4. this agreement will remain in effect until November 1, 1991; 

5. that RD will have the right to extend this agreement with the 

same terms at the tennination date for one year unless it can 

be demonstrated that RD has not acted in good faith and according 

to generally accepted good business practice in promoting this 

product and provided RD can demonstrate serious marketing efforts 

in a quarterly financial and status report. 

6. that this will acknowledge receipt by RD from JS of one computer 

diskette containing the CHAOCIPHER encryption program and associated files for confidential use in market development for the 

period ending November 1, 1991. Such development to be consistant 

with the permanent confidentiality agreement by and between RD 

and Jll of April 17, 1991. 

It is further agreed that RD will not provide emp~oyment fo~ JB und:r 

the terms of this agreement and that JB will retain ownership of said 

product without recourse by RO. 

date :_0+-J:.{::.__:Lf'-+-A--'-'-1 / __ 

·u /1 

I 

PCL~<~~ 

Ricnard Dion for 

RD development company 

John By , 
Mr. Richard Dion 

RD development company 

Rt. 5 South 

P .0. Box 898 

Bradford, VT 05033 

Oear Richard: 

JOHN BYRNE 

DESIGN CONSULTANT 

P.O. Box C • Rt. 25 

EAST CORINTH, VERMONT 050.CO • 802·439·6173 

November 30 , 1991 

As you know, our agreement regarding the marketing and distribution 

of the softwear package corrently referred to as CHAOCIPHER terminated 

by its terms effective November l, 1991. 

There was no basis to extend the agreement since neither condition 

contemplated in paragraph #5 of our agreement for such an extension 

was met. 

I hereby request the return to me of the one computer diskette containing 

the CHAOC IPHER encryption program and associated files provided to you 

at the inception of our agreement. 

Please call me regarding an appropriate date and time for me to pick up 

this material. 

Sincerely, 

John Byrn 
• 

I 

R D development company 

February 5, 1992 

Dear Mr. Burns: 

We are in receipt of your letter(s) and phone requests 

for your material concerning an encryption scheme for use on 

PC based computers. 

In a separate mailing we are packaging all materials 

due you. 

For your information and records, contrary to your 

beliefs, we contacted approximately 32 different 

companies/organizations/groups in order to have an 

evaluation of the material you brought to us. This 

evaluation was for the purpose of determining the 

marketability as well as the acceptability of the product 

concept. In all honesty, our delay in returning the 

material to you has been based on the fact we had to reacquire all material(s) that were located at these various 

locations. 

As far as the evaluations that took place, in all 

instances we were given less than favorable review and all 

indicated that considerable rewrite of the computer code 

would have to take place prior to being brought to any 

market these groups attack. Mainly, the point made centered 

on the end- user approach taken and the lack of a front end 

for the users convenience. Further, it appears that there 

are many products on the market that combine not only 

encryption but compression as well. 

P.O. Om 8116. lloole f> Sc:db. lhdlcrd. Yr ams 

IJl}.fm4111 ~-ffili (fu) 
RD development company 

If you believe that no attempt was made on our part, 

your are mistaken. We expended Just a little over $8,000. 

in our efforts to develop a potential market and attempt to 

place the product with a ''market- maker." We are not 

complaining as we assumed a cost would be associated with 

this effort. Additionally, enclosed with the material being 

sent to you, are any related materials associated with you 

'shower' concept. Again, there are no takers without a 

sizeable up-front investment which we discussed in the past. 

We are not willing to provide such and you had indicated the 

same. The only interest expressed was with a few non-profit 

organizations but in all instances they only reacted with 

the concern centered on the cost issues. 

Regards 

/ 

Richard Dion 

for RD development company 

seperate packaging 

cc: Jay Rosenberg 

P.O. Dal 

~ 

11111. ble 5 Soul.Ii. lndford. YT ~ 

81?/lZl-5.'lli (lat)