- REF ID:AlOl~ 

(De.sic ltr: J . ... D/''· "' ,., ... 191t:~ ··'-~ ,_ r· i> . ..,, t n t O.l. .t.e• ii9C -.,,,-c, :th&iv.i \ ti• i. • 

Relief of .·1111:.am r • l:'ried.rlan. ") 

1st Ind ~1orial& 

'i."02 Jud..,~ Ad'vooate Cene1"911 Department of the Art:l'J, The .'ontagon 

1. CiOVerm.nt time and materials and the aid of other Government 

empio,.ees wre utilised 1n the deftlotJl9ftt of Mr. Me&.n's invent1oll1!. 

2. .\lt.bough the ~ titles of Mr. hiedaan1• p?eitions variel~ 

from t1- t.o time, it 1a ta1r to aq \bat all ot hie in'lentiotJB concerned. 1n thia •tt.r,.... direotl.1' related to hu Federal employraent • 

.;. SillOe the bmmUou wn .a duriag the period trOlll about 

1933 to 1942, when Mr. Prledntn was a civilian emploJee 1n the Office 

ol the Chief Sigm.1 orn.o.r, dOO\Blfttary w1denoe in the r.ture of 

labol'ator.1 ~. caatennee not., aJ'Jd the like, it still a.nil.able, 

should be UIOllg the files of that Ottioe, notwithlst.antU.ng the f'llea 

OOftri.Dg the applieat!oaa tor_ patent are in the custody of the National 

S..Ourity .1.genoy. The otticial findings ot the Sit;nal Corpe relative to 

the relationa betwe »r. tr1.edJMn1a ~nt and his several inventions are to be round 1n the Signal Corpe Patent Eoant minutes, copiea 

ot which ~ ban. The t1nd1nga (with the origiml evidence to the 

extent that 1t oould be found) haw been revi.ewd on ff'Nl'al occasions 

w the :agm.1 Corpe aut l:f' 70U and haft never been changed. 

4. It 1a suggested that the Bureau or the Dudget m&1' ha"N acted 

umer a miaappreherud.on in raising the qmetiou at all e1Mo the lan-

~ thereof relatesthem to Txecutift Ordv 10096 which by itD terms 

coven only irmmttona made after 23 Januarr 19'0J furthermore, n. R. 

572! does not pnsut Mr. Medan as a claS11ant :ln the uaual sense 

bu.t ntber u a pet1t1.oner. 

cca c/s 

AG 

301C 

.302L', 

U.FRED R. 71.ARCY 

Colonel, US &.1"117 

Chief of start 

M/Rs The indor~ement is self-explanator,y. The A.G has in his tiles the 

background material relating to this matter. (See, for example, lst Ind, 

29 Feb 52, fm DIRAFSA to JAG, D/A, subject, in part, as above('!) 

2 

Henry D. StaurtersR/D:6029.3 

~~~~~,L~g~293 

@'pproved for Release by NSA on 05-21-2014 pursuantto E.O. 1352a 
oral; 36 ~i 

2 9 FE 8 · ·~r··/J 

1. An inTestigation of the background of the subject bills bu 

been completed. 

2. !\eferenoe is first made to the letter of 5 Jul,;y 1951, from 

the Judge Advocat. r.ieneral 1 Department of the Arm1, to the Director, 

A1'SM<l Forces SeeuritJ Agency, ane. particular~ pa.ragrsph 10 thttreo:t, 

and the infol!'lllation and C011Mnts below relate thereto. 

a. ~'hether ~. Friedman baa acoaaplished ~thing which 

ttwarranta" ooapenution be7orad what he baa alnad1 received in the 

form of salaey and CGB.lllendatiou is illponible to 8q. It ia this 

question that the Congreu mat detendae. It. can, however. be se.id 
REF ID:A101355 

(Baoic ltra JAG, D/A, of 20 December 1951, subjects H. R. 5728, 

82.d Congreee, 1st Seas1on, a bill "For the Relief of 

William P'. Friedman" and s. 228.3, 82d Congress, lat 

Session, a bill, "For the Relief of Hlliam F. Friedman") 

1st Ind (cont.) Serial• 3 -. q 

b --· 

2 9 FEH 1852 

that his inYentions over a period of years have been of ver7 substantial 

valU9 to '\hia Government and its allies. It can also be said that thia 

aituation dirtera from the 9Pgn4 oaae in it.a aeereo1 upeot11 olusitioation wu not involved in the gepP4 •tter. 

b. The probl• or ownership of the inventiou has been in 

queetion on aeven.1 ol"casio.na not onlf in the Army Security Ac£>ncy, but 

in the Signal Co!"p9 and, it is believed, in your otf1oe a• well, but no 

final determination baa ever been made. During a large pert ot the eaplOJlleflt or Ir-. hiedaan, h• baa been a pa"1 t.o Yariou ~-ente de-

•laring that he -. "employed to in.Yent" bat aeldoa, if ever, has there 

'been direetion to il:n'ent M1' apecific thing. Rb dutie• have, by anti 

large, been ~hoee of a ohief C1"7ptologist. 

c. Estimation of the commereial po&aibiliti•s of the Friedman 

1Jn'ent1on1 is difficult. As far es is known nere, relatively little 

eomercial use is mad• ot privaey aysteu in +;his country excr~pt in 

banks and other financial organisations, and t::ieir uae or business codes 

it c011mOal1 dictated as much by ecen01117 cona1derat1on• as 1ecurit1a 

n.nertheleea, it eanne'\ be aa1d 'hat a •rket for high-pade ciphering ... hin•• could not ba•e been developed. Moreover, in the abeenoe or 

aeeurit7 oouidera'\iou, it is likefy tbat a subs'\ant.1&1 market for the 

inventions eould have been dneloped among foreign pnrnnnta. Ptlture 

009HN1alisat1on is subject to the Aile diftieul\iea or eTaluation. 

d. So tar •• 1• lmo•, there baa been no e-rcial un abro9d 

of Mr. Friedaaa'• iaY&Uou, _. at laut "1 w in bebalt ot the United 

~-· Gof'..._ .. ,. ,_.Sp w, 1n other WGl'dat llaa Ma ..tined to the 

11111....,. •rr1M• ot ~ UrdW Stailn ad 1\a alliu, ud, thm, withia 

the ... pe •t tbe wl Gnenmaat u ...... 

J. Referring paera.l.lT t.o coapaaUoa ·ror Mr. M.-.. oa aooout 

ot Jai• iaftDUou• I r .. 1 Mr7 ..,_11' 'libat i't n.uu ae't be ta the .. 

W.. ot a nwud, nohl-.t.u.41.ag "'- "'-"•• or hia innations ancl their 

anq•lltloud ft1ae to .. United sta\ea aad it. alUea O'ftr a period ot _..,. J'MI"•• D cleea appear to •, • the otllier bud, 'Ulatt 1t the llrlu1-' hu 'beu. ~ an oppo:rtualt.,r to ~ •••reial ba9fit 011]J" beoaue Irle laftaU.. ware 1a a MU1t1w tt.14 aac1, _,.. aj.pltS.oeat]1', oalT ........ tbe:r ... 1apertaat la tat ttel4, .... hi• ....... , 

relattw to the U...1atat ot other Cew1a\ 1Jmta1lon, ••an 1-a 

9<1dtable. 

4 
(Basic ltr: JAG, D/A, of 20 December 1951, snbjeet: h. Yi. 572E, 

82d Congress, lat Session, a bill "Fo~ the Helie£ ot 

dlliu r. 1'"'1-iedman11 and s. 2283, 82d Congress, lat 

Session, a bill, «For tbe Relie:f' ot Yiilliaa F. Friedman") 

lat Ind (cont.) Serial: 3 6 '=l 

2 ~j f ; 2 i~'J'J 

4. Considering eapecially the matters raised in paragraph 5 ot 

the basic correspondence, I fail to aee that. the sJ)84ial agreement 

between Mr. Friedman and the Government has substantial bearing on 

the principle und•rl.1ing the subject bills. Silloe certain or the 

invent.ions •ere made beture the date or the agreement, it would, at. moat~ influence the amot~.nt of the recover;y. 

5. furthermore, if there is merit at e.11 in the theory on which 

the bill.a are baaed, then it appears that ueroiae by the Chief Signal 

Officer of ~:!.s right.a Wlii.er t.ha 19.3f. contract would not bar com~nsa.­

t1on with respect to inventions made even after that dat.81 but only 

with respect to loea or C01111ercial rights aft.er assignlMJ'lt might be 

requested (or aooom.pliahed). Elmept for securit7 oonsiderationa, the 

inventor could have been attempting comercialization ot hie inventions 

tor the past fifteen years. To say that no da•ges accrued durine that 

pericl merely because the Chief Signal Of.ficer may take title at IOlle 

date in the future does not seem realistio. 

6. a. complete state.ment or ~ilr. iriedman 1s military and civilian 

Government service is in.closed. The record sho•s that be is not new 

receiving, and has never reeeivec1, any pension for dieability. As 

will be seen, his salary over a period of ,ears bas been above the 

average tor Goverm:ent eaploJees, but to base an adverae decision on 

this oircumstance would be equ.1.valent to penalizing a.n outstanding 

employee since u.lariea in the field are no higher than elsewhere in 

the Government. 

7. I feel that Public Law 700 provides little basis for any claim 

by Mr. Friedman. Such a claim, as I understand it, auat represent compenaation for UM by the Government, and the Government bu bad, by 

license or assignment, the free right to ue all or the inventions. It 

is .turihermore true in 8.D'1' case that a claim under Public Law 700 must 

be based upon a patent, &nd no patents coftring signifioant imrentiou 

have as yet iasued. There has been, in other l'!Ords, no use o!', at most, 

inconaequential use or patented in'Yentiona but substdtial UH of in• 

vent1ons of pending applioationa. It uy be noted that w-a-. Friedman bas 

oonai.tent.l.y dieclaimed aey intention to bring suit under Public Law 700 

or any other statute. 
DIRAFSA 

( f~sia ltra JAG, D/A. 1 ot 20 December 19511 aubJMt• H. R. '5128 1 

82d Congres•, lat Session, a bill ttfor the Relief of 

W1ll1aa F. l'!rf:edm&a• and s. 2283, 82.d CoDgNaa, l8t 

Session, a bill, "For the Relief ot Willia F. Ji'ri.edmall") 

i.t Ind (cont.) Sw1al1 36 J 

2 9 F[b i~::i~ 

a. Baae4 on the taets before •, and 111 the a'bMnoe ot a 

•ll-deftaed Gcnrewt poli07, l t•l that I ehould not oppo• 

Mr. ~·• etterte to ·obtain i.ctelaU.w rellet. 'l'llia 1e .... PHiallT tne •iaoe I,aa ootmaoed that ia 1lbe laac 19 D orpa• laatioa aueh u.tbe Aned r... Seftrf."7 Apml7 wUl ntter tt, 

relaUve to oiMr ozpaiat.iou, 1\ ..t otter leu •'t aaJ¥ ot 

pa.blio noogni:U.aa bd alao of •terial pill t.o 8811 •t ntat;udSq aten!.pue, tac..s.v, w uu1. 

Inolonre1 • 3 

11 2 • a/o 

M14ed 

'· ..... ot s.m..., WilllallP. ~ 

) 

RALPH J. CAIIlll 

laJ•Oeaenl, v. s.A:rltJ" 

l>lNetor, ll'md ,.. ••• S.O.S.'7 ......,. 

Chief, Plans & 

Policies Div 

AG 

Chief, R & D 

Patent Atty 

,. 

RBSTAUFFER:ILPASSA:293 

3021:1723316 Feb 52 

Note: Inc ls l & 2 were the 

House and Senate bills, 

respectively. 

'