HEADQUARTERS, ARMY SERVICE FORCES 

OFFICE OF THE CHIEF SIGNAL OFFICER 

WASHINGTON 25, D. C. 

8 June 1944 • 

.MEMORANDUM for_ Legal Division, OCSigO. 

(Thru Channels) 

:JPSIS-3 

~·ub ject: Invention of Authenticating Device for 

Co11lr.1ercial Usage. 

1. A number of years ago I invented a message authenticating system, which was formally processed through the then 

existing Patents Section of the Research and Development 

Division, OCSigO. (Tab A shows the papers in the case.) The 

invention was covered in U. S. Patent No. 2,080,416, dated 

May 18, 19?:·7, and the apparatus described therein may be 

manufactured and used by or for the Government for governmental 

purposes without the payment to me of any royalty thereon. 

{Tab B is a copy o.f the patent.) The invention has thus far 

not been reduced to practice because of its complexity. 

2. I have recently conceived of a modification and 

simplification of the authenticatiox+ device covered in the 

above-mentioned U. s. Patent No. 2,080,416, the same being· 

briefly described in the accompanying sketch and general specifications (Tab C). It is requested that the usual forms 

be supplied me f'or purposes of recording tne date of' conception, 

etc. 

-3 •. Primarily, this invention, as was the previous one, 

is intended f'or use by banks in authenticating messages involving the tranefer of money from one bank to another. 

However, it may have military applicability in connection 

with the authentication of messages. and it may be desirable· 

for the Government to acquire rights similar to those pertain- ing to U. S. Pe.tent No. 2,080,416. However, permission is · requested to allow me to construct a model at my own expense 

and to prosecute the present inventJon for commercial usage, 

at my own expense, immediately upon the termination of the 

present war. 

czJ ;J-e ... ~· .. .., a. 2;11: 0 "'"' .. ..___ 

William F. Friedman, I 

Director of Communications 

Research. · Declassified and approved for release by NSA on 07-29-2014 pursuant to E.O. 1352, 

Inclosures: 

Tabs A, B, and C. 

BONFIDENT\~l 
e. REF ID:A3635. 

,., 

WAR DEPARTMENT 

Office of the Chief Signal Officer 

Washington 

April 19, 1935 

MEMORANDUM FOR: Major Akin. 

1. Under date of November 15, 1933, I forwarded a 

memorandum, drawing, and draft specifica~ions covering a 

cipher device on which I desired a patent application be 

drawn. The papers are attached hereto. 

2. This device presents excellent possibilities for 

a commercial device for banking purposes in connection 

with authentication of money transfers by cable. An opportunity has recently presented itself for disposing of my commercial 

rights to this invention, the government retaining license 

and shop rights as usual. 

3. It is requested that permission be granted to 

enter into negotiations with a prospective purchaser of 

these commercial rights. 

Attached: 

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File on case. 

p 

y 

/s/ William F. Friedman 

William F. Friedman. 
REF ID: A3635lfi __ : ._. 

1st Memo Ind. 8 

Wa~ Plans & Training Division, April 20, 1935. To: Research 

and Development Division. • r • 

Approval recommended pr~vided it is understood that 

should the letters patent be granted the government w~ll be 

able to obtain any and all ma.chines desired without the payment of royalty. · 

Incl. 

/s/ S. B. Akin· 

S. B. Akin, 

Major, Signal Co~ps. 

l Incl. added - Memo. 

from Mr. Friedman to 

Major Akin,_ 11/15/33. 

2d Memo. Ind. 10 

Research & Development Division, OCSigO, May 2, 1935. To: War 

Plans & Training Division. 

1. Where an invention is originated by an employee of 

the Government, as in this:case; the Government acquires the 

usual license rights irrespe~tive .of w:hether he negotiates the 

sale of his commercial rights either before or after the filing of a form.al patent application and the purchaser ~f such righ~s 

take.a title subject to an ·irrevocable, non-exclusive license 

to the Government, which license should be executed at the time 

the formal patent application is exeout~d. . 

2. The following'procedure is recommended: 

a That the patent application be filed thru the Patent 

Section of the' Signal Corps and that attorneys.representing the Government be made attorneys of record in the original application, but that patent counsel.for the purchaser of 

the commercial rights prepare the specification, claims and 

drawings for the application. ·Handled in this way, the case 

would come under the Act of 1883 as amended and the payment of ·a filing fee would be waived. 

3. Upon the actual filing of the application in the Patent 

Office, an associate power of attorney would be given to patent counsel representing the purchaser of commercial rights, with the 

understanding that said patent counsel would be responsible for 

the prosecution of application. All replies to patent office 

actions prepared by outside patent counsel should be transmitted 

to the Signal Corps Patent Section for actual filing in the patent 

office. 

4. (a) If during the pendency of said patent application 

c 0 p y -2-
• REF ID:AJ635lifi . ~ • 

and prior to the grant of a patent thereon, ~pplicant should 

make a formal assignment of title and have said assignment recorded, the assignee (i.e. the owner of the commercia+ rights) would then become responsible for the payment of the final 

government fee. 

(b) On the other hand, if the formal assignment of· title 

be deferred until after the actual grant of the patent, the 

payment of a final government fee would thereby be avoided. 

Incls-n.c. 

/s/ ~ohn H. Gardner, Jr. 

John H. Gardner, Jr., 

Captain, Signal Corps. 

3d Memo Ind. 8 

War Plans & Training Division, May 6, 1935 - To; Executive 

Officer • 

.... · · Approval of request contained in paragraph· 3 of Mr. 

Friedman''s memorandum or April 19, 1935 is recommended subject 

to the provisions of 2d Memo Iridorsement. 

Incls. (no change). 

/s/ s. B. Akin 

S. B. Akin, 

Major, Signal Corps. 

4th Memo. Ind. 

Executive Office, Ma~ 7, 1935 - To Major Akin. 

2 

Approved as recommended in 3d Memo Indorsement, hereon. 

Incl. n/c 

c 

0 

p 

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/s/ Dawson Olmstead 

Dawson Olmstead, 

Lt. Col. , Signal Corps, Acting Chief Signal Officer of the Army.