- • • REF ID:A1012_("_~, . ._,, \ " 

DEPARTMENT OF DEFENSE :.. . 

ARMED FORCES SECURITY AG6NCY 

WASHINGTON 25, D. C. ,-·~·. 

il'SA-03!5/ILP 

15 June 1950 

/" 

MEMORANDlll THRU TECHNICAL DIRECTOR, OFFICE OF RESEARCH AND DEVELO~ £ L 

FOR: THE CHIEF, OFFICE OF RESEARCH AND DEVELOPBNT ~ • 

SUBJICTa JAG (Ara7) Conf'erence Relative to Inventions et William r. 

Friedman 

1. Until Jaauaey, 1950, the rights of Government-emplo7ed 

inventors in their inventioas - as opposed to the rights ef the 

Government - nre fixed in general b7 oust• and judicial decision. 

Although a few pvenmental organizations had special (more restrictive) policies, netabl.7 the Department of Agriculture and the 

National Bureau of Stand.aria, the general rule was that the 

Government took tree licenses to practice the inventions made by' its 

empleyees, and the inventors retained title and collllercial righte 

there ill. 

2. While in the Office ot the Chief Signal Officer, the patent 

policy ot which was the general rule above-mentioned, several inventions were made by' llr. William F. Friedman (either solel.7 or in collaboration with others). The most significant or these were embodied 

iB equipnents known as SIGABA, SIGCUM, and SIGFOY. These inventions 

(with others by' the sue and other inventors) were considered classified to a degree which would not permit the issue of patents, and 

the result was that domestic and foreign commercial promotien became 

impossible. 

3. Mr. Friedman bas leng felt that this situation discriminated 

untairl.7 against inventors ot crrptologic and other highJ.7-elassified 

equipnent and bas made several attempts to modify it and to have one 

of his applications (SIGCUM) declassif'ied so that a patent might issue. Be has net so far been successful although the Director of 

Intelligence has taken. a position generally favorable to such 

Govermaent inventors (see IDClosure 1). 

4. It •s with this general 11ackground that the JAG {DeJ».rlaent 

of the Arrq) called a meeting on 8 June 1950; the purpose was to consider the possibilities of compensating Mr. Friedman for loss of commercial rights, domestic and foreign, suffered as a result of the 

classification of his inventiona. 

H Declassified and approved for release by NSA on 05-20-2014 pursuantto E.O. 1352a 
• 

29 April 1946 

MEMORANDUM FOR THE CHIEF, ARMY SECURITY AGENCY: 

SUBJECT: Release of Cryptographic Principles. 

1. The following polic7 is announced to be ef'f'ective 

imediatel,y: 

a. Cryptographic principles or devices developed by 

otticers, enlisted aen, or civilians employed in any War Department Agenc1, or patents or patent applications on such principles or devices which are owned by, assigned to, or licensed 

tor use 0£ the War Department will not be released tor use or 

foreign governments or for foreign or domestic collllercial or 

private use until such time as necessar.y information is available and & procedure established in the A:ft7 Security Ageno7 

whereb7 information which is ceyptographed by means of such prin- ciples or devices can be ceyptana]Jrzed and read under any and 

all circumstances. 

b. Where it is in the interest of the Government of 

tbe United States that an empleyee have no patent rights in 

cryptographic principles or devices to dispose of', and for the 

Government to own the entire interest for security reasons 

throughout &XU' foreseeable future; and where discovery or invention or ceyptographic principles or devices has been made 

by a civilian employee and does not rela.te to a matter as to 

which the employee was specifically directed to experiment with 

a view to suggesting improvements nor ns produced as a result 

of any specific empleyment or contract to invent a specific 

device or article; and where an application t•r patent en such 

principles or devices has been f'iled with an assignment-in-trust 

to the Government tor the purpose or maintalldng such application in secrecy, the Military Intelligence Division will support, 

subject to the availability of appropriations, &IQ' reascmable 

request for purchase or all commercially expl•itable reversionary rights of the inventor in the patent application. 

Isl CARTER w. CLARU 

Celonel, GSC 

Acting Deputy, A. C. of S., G-2 

Copy 
• 

JAG (Arlt1') Conference Relative to Inventions of William F. Friedman 

5. Presen.t were: 

Mr• Fischer ) representing Mr. Friedman 

Mr. Pauer ) 

Major Smith ) of Intelligence Division 

=~o~~~r ~ or the Office of the Judge Advocate General 

Mr. Stauffer ) of the Araed. Forces Security Agenc1 

Mr• Glassran ) of the Office of the Chief Signal Officer Mr• Saragori ts ) • 

6. Following a briet account by Major Mills of Mr. Friedman1s 

llilltary and civilian service, the meeting was turned over to Mr. 

J'ischer who immediately disclailled tor Mr. Friedman ~ intention of 

prosecuting ~ formal suit against the Government tor compensation 

or d&Jlages resulting from the treatment of &JV' of his patents and 

applications. In brief, he asked that an attempt be made to obtain 

before-band approval by the Department of Defense ot a private bill 

tor special compensation; he mentioned two precedents for such a 

private bill, namely1 one relating to Wilson {Nav Department)t 19351 

and the other relating to Gre1ham yg Driscell (Navy Department), 1937 • 

7. Major Milla was uncertain whether the Department of the A.ra-r 

or the Department or Defense could, with proprietJ', commit itself in 

advance in such a matter, but suggested that Mr. Fischer supply for 

stud1' a draft ot a proposed bill, a brief in support of the desired 

action, and complete citations for the two precedents above-indicated. 

8. Mr. Fischer a.greed to supply the req\lested doctlll8Dts within 

approxiu.tely two weeks, and the meeting was closec1.. 

l Incl 

Cy Memo 29 Apr 46 sgd 

CWClarlr.e, ACS/G-2 

Copy furn.iahed: 

Chief, AFSA•l.4