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,... -~'-'REY ID:A7072'6-

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2 9 FEB 1952 

- - - ---- a.a !'oro&a SeeuritT &ge!t.q', Waeh!.ngton. 2s, D. c. - - - -

_!01 _ ~ A4Yoca• «e>l91'&1. ~ ot t.he 11'91' 

_ i. -AR -!Dnsttpt!aa ot • aelrgroad or the .-zbJeot billll hu 

been coap1-Wct. - - - - - --- 2. lfeterwe 1• ~!nt ..a \o ti. la"- ~ 5 .Jtiq l.9511 tnm 

the J\111Jge Aanaaw GeaenJ., Deparimea\ or • &DIT, • tbe ~ • 

.&.zmed J'areea Sear!V Agenq, and particl•Jer~ paragraph 10 theeot• 

.,.a the !ntO!'ll8.t1ma all4 oo• Dt• 'belos i-elate ~to. 

Declassified and approved for release by NSA on 03-18-2014 pursuantto E .0. 1352a 

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.. REF ID:A70726 

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(Basic itra JAG- D/1, of 20 December 1°51, subject& ll, R, ~28, 

824 Congress, 1st Session, • bill "For tho Relief ot 

William t. Friedman" and S 22831 824 Congress, let 

Session, a billt nror the P.elief of' fiilllam F Friedman") 

1st Incl (cont ) Serial• JS 9 "t'" 

2 9 FEB 1952 

'that Jd.a invention.a over a period. of 1eara ha-we been of verr subatanthl 

Ya1M to this Govcmman.t and its allies.. It can alao be aaid that th1I 

11f.tuation d:l.tters from the GgrewJ aue in its aeoreoy aapectaJ olus1• 

ftcation was not involved 1n the Sl@r•n4 matter 

_ b. The problea ot ownership of the in'fent!ona has bee 1D 

ttuestion. on aeTaral. oecasiou not on]T in the ArJltl Security Agency, but 

in the Signal Corps a?ldt it 1.a believed, in rour otfioe u well, mt no 

.final determination has ever been made. J>ur1ng a large pearl ot the _. pl01Jl81lt or Mr. Friedman1 he has been. a party to various egr8eQellg deCllal"!ng that he .... •emploJred to invent• but aelclom, if evel'1 bas there 

he». direction to lnYent an, apecifie tb1ng, Bis duties have, b.7 and 

large, been ~hose of a ch1e£ orntologiat 

e Est1mat!on. of the commercial possibilities ot th• Friedman 

iQ,TentioDa 1• dil't1oul~ &a tar as ia know hare, rela.tiyelJ li1iitle 

eOllJlercial use is made of privacy- aystema in tlus country except in 

banks and other financial organizations, and tneir use or business cod.ea 

!e comon]Jr dictated as much b7 econom;r considerations as security, nevertheless, it ea.rmot be said that a •rket tor high-grade ciphering machines could not have bHn developed loreover1 in the a'betmoe ot 

aeeuriv oonsiderat1ons1 1" is l.LcelT tbat a 11ubs"an'tial urke°' tor "1le 

!nTf!Jltiona could have been developed among foreign goTermenta Ju.Wl'e 

comeiioialisation is subJen to the _.. d1tticul.ties or eftluatlon --

-=--:_ -d So hr u 18 known, theie baa beea no ~-uae abroa4 

ot mr. Friedman'• lBYents.ou, DOD8 •" laan bJ'" _. in behalf ot the t1n1te4 

.St.te• GoY~. Jbnip w, in other w.rda, hall been ccmt1na4 to the 

m;ill:tarr ••rvioe• ot the Vrd.W States and its aUJ.aa, &1141 tlma, 1d.thia 

t ... --~pe ot t1ut - ...i ...... ~ u..-·· 

_;t. Wentns ~to C01lp911a'\ion for Mr. P.rJ.ad•111 oa aooomR ~ bis !nvenUona, l feel wr, stronglT that it abou24 ao'I; be 1n the natun of a Z'mM, aotwithstantUng ti. .trims ot hi1 im'ehtiona and the11-

1mq11altloJ:led Yalu• to the lJzlited stat.a and 1ta all.tea ner a perio4 of 

llaD7 fear•• It 4oaa appear to • 1 OJl the o~ :twMl, tbat1 Uthe SllYator baa been tlaS-4 an opportmd.'lf' to nalise ocwroial benefit onl.1' beoaue Id.a :lnftntl.ou-... ta a nuit1Ye .t!a14 1&1141 aon 11galt1caatl1', orsl1' because th81 ,.... !a~ m tba\ fteld.1 \ban hie treat1aeat, 

nl&t!w to the Ve&tment of other Government inventors, haa not 1*m. 

equ1tabt.. -, 

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_____ REF ID:A70726 

(Baa!c lv• -.TAG, D/J., ot 20 December 1951, Ab3ect• B R 5733, 

824 Collpea11 l8t Session, a bill "For the Relief" ot 

tfill'n F • ~" and s. 22831 824 Conpeu, la\ 

S.asiorlt a bill, •For the Relief ot li!llia• F. FrieclmaD•) 

1st In4 (coat.) Ser1alt 36 9 

29FEB1'952 

4. Conaider!JJg eQ&Cia1l.7 the •ttn-a niaed Sn paragraph 5 of 

tb.e 'buio correapon&mce, I fail to aea that the apaolal qreeaen 'between. Ml:'. Fde4man amt the Gavenmen:t haa subat.ant!al bear1DI cm 

the pr1Dc1ple underl11nc the au'b3.ct Ml.la. S:S.noe oeriain. of 1:.h9 

inventiou wee made bataH the data ot the agreeaent, 1" 1J0u14_, a\ 

mori, ~· the aJIOi>At or the 1'e00ftl'J'• 

$ ~t U t.bere 1a meri\ ai all in the tb9017 on whiob. 

the b1l1a are -:~ t.hen !ii appears tba.t tmn'Cis• bt tbe Chi.et Slpal Ottioer ot hia r a under the 1936 contract would no\ bar com.pen.a• 

tlon with napeot w inveaUona aade eftll after ti.t; date, bu.ii GnlT 

ld.th respect to lo•• ot commel'Cial ):'igb.ta after uslpaesat ldsh\ be 

requaaW (or aocompl.1abed). Emapt for security oonaiderat:lcma1 the 

inventor could have been attempting comeroialiutf.on ot h1a !Jmmtiona 

tor the pan fttteen JWU'11• To sq that no damagee accrued duriq that 

period :merei,. 'becauae the CJ:d.at Signal Ott1oer aq taa 'title at w 

Bate SD the tu.ture does not 88eJI NaU..tie. 

6 A comp1ete statellfm'li r4 J.1:'. Fr.teclman•s militaq and ciYiliaD 

Govemmont senioe is inoloaed. The ncor4 &hon thn be 1a not DOW 

recei"ling, and has nner reaeived, Ul3' pension rcr tlillabUitJ'. Aa 

'rill be .-n, bis salar7 O'IW' a period of 79ara baa bee abOTe tba •••ftl• tor Gonrm!ell'\ aploJeea, bv.ii to 'baae an d'v'RH cleolaS.Oa Oil 

tb1ta c~ woUld 'be eqUivalan.\ to penalia!Jll an outstandtng 

emploJ'89 ainoe llllar1a in. the t1el4 are DO higher tbtm elae'tfbezte ta 

the Gornna.en.t. 

7. I feel tba't Public Law '100 proT14es little buia tor 81J1 old.a 

'bJ' llr. h!ed.aan. Such a old.a, u I ~ it, aut nprese" COJlpeuation tor ue b7 the OoTenm.ent, a« the Qcmu:ment bu i..a,. Iv' 

Uowe or asstsnrant, the ffte r!ght to 1.11e all of the 1aftnttona. D 

u .tunlumD:re -.. ta _, -.. that a aJ.da mar:ta PubUo Law '100 an 

be baaed upou. a pated,, ml no pe.tma CO'fllring •tsnltloant menttona 

haw &11 J'et iaaued. There baa bean, 1n other '10rc!s, no uae or, at most, 

iaconaequential ue ot pa~ted 11\YeaUou bnt auhstal\t!al ue ~ tnventiou ot pud1ng appliaats.ou. It -.r be noted that •• hi.a.an baa 

( oonsf &tte.ntl,1' 41eeld:me4 ~ Sn'ent!on to brhg suit miler Pablie Lu '100 

or 81J1' otb.- natuM. 
REF ID :A70726 

DIRA.FSA 

.... 

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Incloaurea - 3 

1, 2 - a/o 

Add.et! 

_ '· ReCOJl4 ot sentoe. 

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CCnr/incl 3 

ll {3) 

12 

301 (2) Chief', Plans &: .30Z1i'(~..__ Policies D1"f' 

AG 

---~.! 

HBSTAUFFER ILPASSA 293 

302L 1723.316 Feb 52 

Chief, R & D 

Notes Incls 1 & 2 were the 

House and Senate bills, 

respectivel.1' 

Patent Att7 

6 

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Serial& 

Armed Forces Securit7 Agene7, Washington 25, D C ~ 

/J;o&e •• ,, " 

TO Judge Advocate General, Depirtment or the Ariq, k!!"EJRIOB Li-eutemm~....l.-&dgea,-Jr...,...Chiet ,-Patents 

D1vi-ei-oa 

l An investigation or the background. ot the subject bills 

bas been completed 

2 Reterence is first made to the letter or 5 Jul.1' 1951, 

from the Judge Advocate General, Department of the Army, to the 

Directer, Armed Forces Security Agenc7, and particularly paragraph 10 thereof, and the information and comments below relate 

thereto 

a Whether Mr Friedman has accomplished a.J:cy"thing which 

"warrants" compensation beyond what he has already received in the 

form of' salary and commendations is impossible to sq It is this 

question that the Congress must determine It can, however, be 

said\tbat his inventions over a period of years have been of very 

substantial value to this Government and its allies It can also 

be said that this situation differs f'l'om the Gardbd case in its 

secrecy aspects, classif'ication was not involved in the Garand 

ma.tter 

b The problem of ownership ot the l.IlVentions has been in 

question on several occasions not only in the Army Secnrit7 Agenc7, 

but in the Signal Corps and, it is believed, in your otf'ice as well, 

but no final determination bas &er been ma.de During a large i:art 

ot Mr Friedman's employment, he bas been"°'par1yto various agreements 

declaring that he was "employed to invent~ but seldom, if" ever, has 

there been direction to invent arq specif'ic thing His duties have, 

by and large, been those of a chief cryptologist 

c Estimation of the commercial possibilities of the Friedman. 

inventions is difficult As far as is known here, relatite <-.l.).t:tle 

commercial use is made or privacy systems in this cOlllltrJ:~iill!illiNl;liM!lll 

:In banks and other financial arganizatioDS, and their ) or bus:lneaa 

\ 

.............____ ......., l:anm M -----sat/I - ...._ 

-.... 

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codes is common~ dictated as much by econo1111' considerations as 

security, nevertheless, it cannot be said tbat a market tor higbgrade ciphering machines could not have been developed Moreover, 

in the absence of security considerations, it is likely that a substantial market for the lllVentions could have been developed among 

foreign governments Future commercialization is subject to the 

same difficulties of evaluation 

d So far as is lm.own, there has been no commercial use abroad 

of Mr Friedman's inventions, none at least by or in behalt of tba 

United States Government Foreign use, in other words, bas been confined to the military services of the United States and its allies, 

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

3 Referring generally to compensation for Mr Friedman on 

account or his inventions, I feel vet'f strongly that it should not 

partake or the nature or a reward, notrlthstanding the virtues ot 

his inventions and their unquestioned value to the United States and 

its allies over a period of m:ny :iC!s__.> / 

41· ·-- f~ .... .{,rv JAi ...t£a It does appear to me /'iiirn1ar, that, it the inventor bas 

been denied an opportunity to realize commercial benefit only because 

his inventions were in a sensitive field and, more significantly, 

only because they were important in that field, then his treatment, 

relative to the treatment of other Government inventors, bas not been 

equitable 

f Mr Friedman's salary over a period of years, as "ll'ill be 

seen :from Inclosure 3, bas been above the average for Government employees, but to base an adverse decision on this circumstance would 

be equivalent to penalizing an outstanding emplo19e since salaries 

in the field are no higher than elsewhere in the Government 

~ I feel that Public Iaw 700 provides little basis far &Jl7 

claim by Mr Friedman Such a claim, as I understand it, must represent compensation for use by the ~ermnent, and the Government bas 

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

It is furthermore true in any case that a claim under Public I.aw 700 

must be based upon a patent, and no patents covering signiticaJit inventions hsnas yet issued Tb.ere bas been, in other words, no use 

or at most inconsequential use or the inventions or any patents It 

may be noted that Mr Friedman has consistently disclaimed 8.DiY 

intention to brillg suit under Public Law 700 or any other statute 

l ~ A complete statement or Mr Friedman's military and civilian 

Government service is inclosed The record shows that he is not now 

receiving, and bas never received, any pension for disability ..... 

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7 Based upon the !"acts bef'ore me, and in the absence or S:tJ'I 

Gove1'.ment polic7 generall;r covering situations such as this, it is 

m:r feeling that, while I mould not vigorously support the lll'Ventor•s 

position, I should also not take strong action to def"eat his course 

of' action 

3 Incls 

1 n/_e 

2 D/o 

Added 1 Incl 

3 Record of' Service 

RALPH J CANINE 

Major General, U S Arrq 

Director , Armed Farces Securit7 Agenc7 

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Schedule B-4-III Research 

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- lob Deaw:tpb1ou1 

SS-M/J>Sreoficlr of Commmd.eats.cm.a Beaeaeh1 P-8 

mnotar ot ftomam4oatl.cma Beeearoh, P-8, 18,ooo 

!NM'oal D!ftotolt ot SeomitJ' Aotldtle•, M, ts,ooo 

lob Shen aaw ~ 16, 1942 

.Appolatment daW lavembar 16, 1921 

-

Bote In accordance nth JDStruatione from Colonel Marc$, ref erenoea 

to classified :i.ntorma.tion were deleted 

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Signal Corps P&ten1' Board linutea1 

•eting Bo 2, April 17 t 1936 

Meeting Bo J, Mq 26, 1936 

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Section Heads, ?lovember 28, 1942 

Br W F hiei'-, War Plant and !ra;ln1ng Diviad.oll 

Seoreo7 for Certain Patonta, J>eoember 11 1939 

Admin18tratioa S.Oticm1 October 311 1921 

-

Note In accordance with instructions from Colonel Marc1, references 

to classif'ied lllf'ormation were deleted 

--=-

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--- --
REF ID:A70726 

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