[comp.sys.ibm.pc] SEA vs. ARC makes the legal journals

jcmorris@mbunix.mitre.org (Joseph C. Morris) (06/01/89)

The ARC wars have been discussed in this forum ever since the original
SEA complaint was filed.  In the meantime much bandwidth has been used
to discuss the issues involved (with various flame heights); the postings
have included everything from personal observations to copies of the
formal pleadings and decisions.

The dispute has now started to appear in legal journals as background
information regarding the evolution of new legal theories and precedents.
The following material will appear in the September 1989 issue of
_Legal_Economics_ in the column "Technology Update" (pp 14 ff) by G.
Burgess Allison.  He is discussing the development of the so-called
"intellectual property" cases now in the courts or likely to find their
way there.

Used with the permission of the author.  All quoted material copyright
(c) 1989 G. Burgess Allison.

----- BEGIN EXCERPT -----

        [Discussion of recent intellectual property rights events
        like the Quarterdeck patent, the Apple look-and-feel lawsuit,
        and Tandy's portable hinge design]

  UNATTRACTIVE TRADEOFFS

      The tradeoffs in this field of law are well established (though the
  field is just now making itself felt in the PC marketplace): We want
  to encourage competition and product improvements, but we also want to
  reward the original inventor and protect the inventor's investment.
  There are several protectable rights and the law will be available to
  enforce them.

      As claimants turn to the courts, though, and as the courts struggle
  to apply principle to technology, resentment is running rather high.
  (As could probably have been expected, a goodly share of this resentment
  is being directed at the class of "lawyers in general."  Still, quite
  enough resentment is reserved for the claimant as well...)

  ARC vs. ZIP

      Several years ago, System Enhancement Associates (SEA) developed
  an archival process for compressing PC data--permitting several files
  to be grouped and compressed together, which aids considerably in such
  activities as moving old data to diskettes and transferring files via
  telecommunications.  SEA's ARC shareware gained widespread usage through
  electronic bulletin board systems (BBSs) and PC user groups, and eventually
  became the de facto standard for file compression.

      In the spirit of ongoing shareware improvements, Phil Katz developed
  a new and improved archival package that read and wrote compressed files
  rather substantially faster than the SEA software.  Of course, to maintain
  compatibility with the horde of already-archived files in the market,
  the public-domain "PK" software read (and optionally, wrote) archive
  files using the same file format that the SEA software used.  So far,
  so good:  Competing features, compatibility, and benefits for the users.
  Regrettably, SEA didn't quite see it that way and took PKWare to court.
  Even though neither of these products are sold commercially, even though
  the software and file formats had been openly discussed, and even though
  it was plainly obvious that Katz had rewritten his software from scratch,
  SEA now claimed copyright infringements on everything--most notably on the
  use of ".ARC" as the *file extension* for archive files.  PKWare was forced
  to change their software so it wouldn't read or write .ARC files (and of
  course, since it can't read .ARC files, then it can't be compatible).

      The backlash from the user community was immediate and overwhelming.
  PK's new archival software (PKZIP, complete with a new ".ZIP" archive file
  extension) was a hit as soon as it was released, and it's already the new
  standard for archival software.  SEA's ARC is gaining widespread disfavor,
  and in certain circles the mere presence of an .ARC file is a sign of
  social irresponsibility.

      Admittedly, the world of shareware and public domain software isn't
  quite the top of the market (where you'll find other noted litigants:
  Lotus, Ashton Tate, and Apple).  But the potential for backlash against an
  in-court victor is very real.  In this case at least, the users expressed
  a clear preference for a vendor who fights it out in the arena of software
  features and capabilities, rather than in the courts of intellectual
  property law.

----- END EXCERPT -----

The column runs through a number of other subjects; while I don't always agree
with Burgess, the column does a good job of discussing some of the technical
issues we deal with to a non-technical audience.  Check your local law library
for a copy.

davidsen@sungod.crd.ge.com (William Davidsen) (06/09/89)

In article <54816@linus.UUCP> jcmorris@mbunix (Morris) writes:

| The dispute has now started to appear in legal journals as background
| information regarding the evolution of new legal theories and precedents.
| The following material will appear in the September 1989 issue of
| _Legal_Economics_ in the column "Technology Update" (pp 14 ff) by G.
| Burgess Allison.  He is discussing the development of the so-called
| "intellectual property" cases now in the courts or likely to find their
| way there.
| 
| Used with the permission of the author.  All quoted material copyright
| (c) 1989 G. Burgess Allison.
| 
| ----- BEGIN EXCERPT -----
| 
|         [Discussion of recent intellectual property rights events
|         like the Quarterdeck patent, the Apple look-and-feel lawsuit,
|         and Tandy's portable hinge design]
| 
	[ ... ]

|       In the spirit of ongoing shareware improvements, Phil Katz developed
|   a new and improved archival package that read and wrote compressed files
|   rather substantially faster than the SEA software.  Of course, to maintain
|   compatibility with the horde of already-archived files in the market,
|   the public-domain "PK" software read (and optionally, wrote) archive
|   files using the same file format that the SEA software used.  So far,
|   so good:  Competing features, compatibility, and benefits for the users.
|   Regrettably, SEA didn't quite see it that way and took PKWare to court.
|   Even though neither of these products are sold commercially, even though
|   the software and file formats had been openly discussed, and even though
|   it was plainly obvious that Katz had rewritten his software from scratch,
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
|   SEA now claimed copyright infringements on everything--most notably on the
|   use of ".ARC" as the *file extension* for archive files.  PKWare was forced

  The court didn't see it that way. Several newspapers reported that SEA
claimed that PKARC was based on the original SEA code. One expert
witness gave his opinion as to the origin of the code, and the case was
imediately settled out of court. The testimony was sealed, along with
some other details.

  If your friend was trying to write a factual legal book, he should
check this. I can only guess what the testimony was which resulted in PK
giving in completely, but my guess is that it was not "plainly obvious"
that the code was all original.

  NOTE: I have no axe to grind, I just think that this may be a case of
sloppy research and casts doubt on the rest of the book in my mind.
	bill davidsen		(davidsen@crdos1.crd.GE.COM)
  {uunet | philabs}!crdgw1!crdos1!davidsen
"Stupidity, like virtue, is its own reward" -me