REF, ID:A1013..6..4 

• . --. ~ .. 

Serials 

Armed Forces Securit1 Agenc1, Washington 25, D. c. "'<:::·.: 

TO: Judge Acivocate General, Department or the Army, ~fol: L!eateP'·t CelOMl W1 J Ju» ...J..,,. Bocip•~rCAW-, PfteninJ ......... , .. 

1. An investigation or the background or the subject bil.111 

bas been completed. 

2. Refereace is first made to the letter ot 5 July 1951, 

trom the Judge Advocate General, Department of' the Army, to the 

Directer, ArMd Forces Securit1 Agency, am particularly para• 

graph 10 thereof, and the inf'ormation and colllll!lnts below relate 

thereto. 

a. Whether llr. Friedman. bas accoaplished anything which 

"warrants" compensation beyond what he has alreadJ received ill the 

f'orm or salary and commendations is impossible to sq. It is this 

question that the Congress must determine. It can, however, 1M 

sai§tbat his inventions OYer a period or years have been or veey 

suostantial value to this Govermaent and its allies. It can alao 

be said that this situation differs f'rem the Gar!ftid case in its 

secrec1 aspectaJ classification was not involved in the Garand 

matter. 

b. The problem or ownership or the inventions bas been in 

question on several occasions not only in the Army Security Agenc7, 

but in the Signal Corp8 and, it is believed, in 1our of'fice as well, 

but no f'inal deterraim t:llll baa ever been made. During a large part 

of Mr. Friedman 1 s employment, he bas been:pe.r1J to Tarious agreements 

declaring that he was nem.ployed to invent11 but seldom, if ever, baa 

there been direction to in'Yent any specific thing. His duties ban, 

by and large, been those or a chief' cryptologist. 

o. Estimation ot the commercial possibilities ot the Friedman 

inventions is difficult. !s far as is known bere, relatiJ ~ le 

comercial use is made of privacy systems in this countrJ:Affll•'ili•• 

in banks and other financial organizatiou, and their u or busbeea 

) 

"·~· ... 

/ 

Declassified and approved for release by NSA on 05-21-2014 pursuant to E.O. 1352e 
r-" , REf I~ :A101~4 • ·.'. ' ' • ,) ~t .•• 

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[-,.~ -- -, - · · =~= f\.: ·A·r 1 ,tt, ft-, '~-,- '"' 

codes is co•only dictated as much by economy considerations a• 

•ecurit1; neYertheless, it cannot be said that a 11arket tor high.- grade ciphering 11&chinea could not haYe been developed. lloreOYer, 

iD the abaenee of pcuriV' considerations, it is likezy that a substantial market tor the inventions could have been developed among 

foreign governaents. Future commercialization is subject to the 

a&11e difficulties ot evaluation. 

d. So tar as is known, there has been no commercial use abroad 

ot llr. Fried.ma.D's ill'Yentiou, none at least by or in behalf ot the 

United States GOTernment. Fore~ use, in other words, bas been confined to the llilitary services or the United States a.M its allies, 

and, thus, within the scope or the usual Government licenses. 

3. Referring generally to compensation ror Mr. Friedman on 

account or his inventions, I feel very stro:ngzy that it should not 

partake or the nature ot a reward, 11.otwithstanding the virtues ot 

his mentions and their unquestioned value to the United States and 

its allies over ~~d or maDY, 1~ 1 

~ -·~~p."""'. ~~~ff\, ..a.. It does appear to me, b··s1r, that, it the inventor baa 

been denied an opportunity to realize commercial benetit onzy because 

his inventions were in a sensitive field and, more signi:tioantzy, 

on]J' because they were illportant in that field, then his treatment, 

relative to the treatment ot other Govemment inventors, has not been 

equitable. 

f. Mr. Friedman's sa41"1 over a period ot years, as will be 

seen from Incloaure 3, bas been above the average for Govermunt employees, but to base an adverse decision on this circumstance woul.4 

be equivalent to penalizing an outstanding eaplo79e since aalariea 

in the field are no higher than elsewhere in the Governmen°'• 

~ I feel that Public Law 700 provides little basis for &Jl7 

claim bJ llr. rr:tedman. Such a claim, as I understand it, 11USt represent compensation tor use by the Gv.J:rmaent, and the Govermaent bas 

had, by license or assignment, the~~ght to use all of the inventions. 

It is furthermore true in any case that a claill under Public Law 700 

1t11St be based upon a patent, and no patents covering significant; inventions haftas yet issued. There bas been, 1h other words, no ue 

or at ll08t inconsequential use or the inventions or any patents. I'\ _,. be noted that Mr. Friedman bas consistentzy disclaimed &JQ' 

intention to bring suit under Public law 700 or any other statute. 

~. A complete statement of llr. Friedlla!l'• •ilita.?'1 and civilian 

Government service is inclosed. The ncord shows that he is not now 

receiving, and has never received, 8.D1' peuion tor disabilit,. 

~' 

w ~'·~ti l-~ '. < ·}:). / - ~ .. • :11 :-· 
' - ~· 

- !:> 'i~ . \ ... ; ~.~ ~ ~J ' ,) /; 

7 Based upon. the tuts before me, and in the absence ot 8J11 Gove~nt policy general'.b' covering situations such as this, it is 

my reeling that, while I mould not vigorously support the inventor's 

position, I should also not ta1m strong action to defeat his course 

or action. 

3 Inola. 

1. n/_e 

2. DI• 

Added l Incl 

3. Record of Service 

\ .. 

RALPH J. CANIB 

Major General, U. s. Anq 

Director , Armed Forces Securit7 Ag.ae7 

'• ........ ' 
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