[comp.binaries.ibm.pc.d] The final

gmat@wuibc.UUCP (Gregory Martin Amaya Tormo) (10/05/88)

	The following is a copy of the special fido news issue on the
SEA/PKware debate.  It includes submissions from the Usenet community, the
BBS community, and a statement by Thom Henderson of SEA.  Unfortunately,
there is no statement from Pkware or Phil Katz.

	Furthurmore, it is my understanding that the second lawsuit has
been settled and PKware is now out of business, with an injuction against
Phil Katz from releasing any shareware program relating to the archiving of
files.  I am most disappointed.  Not because I believed PKware was right
and SEA was wrong, but because I honestly liked the PKware programs better
than the SEA ARC programs.  With the facts as listed by SEA in this
newsletter, and without any contest of these facts by PKware, I must
conclude that SEA was fully in the right to pursue a legal course of
action.  I wish there had been another way because we have all lost from
this mess.

	Finally, I beseach the usenet community to heed Dave Dodell's
request for the Fidonet Echomails.  Let us stop wasting money and time
debating the issue any further.  We must plan for the future.  I believe
that all archive sites currently banning SEA archives should end the
protest as it is a mute point based on the now known facts.  I encourage
the use of both ARC and ZOO (although I have never used it), and challenge
programmers out there to port the current ARC and ZOO version to unix, and
to take SEA up on their source code policy and use it to create ARC to ZOO
and ZOO to ARC converters (assuming Zoo has the same policy as SEA or would
be willing to licence the code as necessary).

	It is also my understanding that in the settlement of the second suit,
SEA assumes ownership of the technical specifications to the PKware program 
PKpak.  I challenge SEA to upgrade ARC to utilize the features and speed that 
endeared me to the PKware programs in the first place.  I see no need to
fight for a new standard, nor any reason to abandon the current one.
Rather we must accept the situation that has been thrust onto the shareware
community.  What follows is the relevant text of the latest issue of
Fidonews (IFNA specific material deleted).

     Volume 5, Number 40                                3 October 1988
     +---------------------------------------------------------------+
     |                                                  _            |
     |                                                 /  \          |
     |                                                /|oo \         |
     |        - FidoNews -                           (_|  /_)        |
     |                                                _`@/_ \    _   |
     |        International                          |     | \   \\  |
     |     FidoNet Association                       | (*) |  \   )) |
     |         Newsletter               ______       |__U__| /  \//  |
     |                                 / FIDO \       _//|| _\   /   |
     |                                (________)     (_/(_|(____/    |
     |                                                     (jm)      |
     +---------------------------------------------------------------+
     Editor in Chief                                       Dale Lovell
     Editor Emeritus:                                   Thom Henderson
     Chief Procrastinator Emeritus:                       Tom Jennings
     Contributing Editors:                                   Al Arango
     
     FidoNews  is  published  weekly  by  the  International   FidoNet
     Association  as  its  official newsletter.  You are encouraged to
     submit articles for publication in FidoNews.  Article  submission
     standards  are contained in the file ARTSPEC.DOC,  available from
     node 1:1/1.
     
     Copyright 1988 by  the  International  FidoNet  Association.  All
     rights  reserved.  Duplication  and/or distribution permitted for
     noncommercial purposes only.  For  use  in  other  circumstances,
     please contact IFNA at (314) 576-4067. IFNA may also be contacted
     at PO Box 41143, St. Louis, MO 63141.
     
     Fido  and FidoNet  are registered  trademarks of  Tom Jennings of
     Fido Software,  164 Shipley Avenue,  San Francisco, CA  94107 and
     are used with permission.
     
     The  contents  of  the  articles  contained  here  are  not   our
     responsibility,   nor   do   we   necessarily  agree  with  them.
     Everything here is  subject  to  debate.  We  publish  EVERYTHING
     received.



                             Table of Contents

     1. EDITORIAL  ................................................  1
        SEA & PKWare - Where's the beef?  .........................  1
     2. ARTICLES  .................................................  2
        My Two Cents Worth on PK vs. SEA  .........................  3
     3. COLUMNS  ..................................................  8
        Let's YACK about The ARC Dilemma  .........................  8

     =================================================================
                                 EDITORIAL
     =================================================================


                               SEA & PKWare
                             Where's the beef?


          That's the question that's been bothering everyone recently.
     It all started around  the  beginning  of  the  year  when System
     Enhancement  Associates  sued  PKWare.  From  the beginning, I've
     supported SEA mainly because  I called  SEA and  talked with Thom
     Henderson. Not that many people were willing to do something like
     this. Why? I'm not sure, it sure seemed  an easy  way to  get one
     person's version  of what  was going  on quickly  and easily. Why
     didn't I call Phil Katz? Mainly because I knew Thom  from FidoCon
     '87. I'm  not sure  how much  good it would have done anyway, for
     the past two weeks  no  matter  when  I  call  PKWare,  I  get an
     answering machine.

          What are  my opinions  on the two lawsuits between these two
     companies? Well, first off my  opinions  are  biased.  I consider
     Thom a  friend and  trust him.  While I do not consider his words
     gospel, I usually accept most of what he says. In  this matter, I
     believe that SEA was completely correct to sue PKWare.

          While  I've  learned  a  few  new things about copyright law
     while looking into these lawsuits that  I'm not  entirely pleased
     with, I am capable of understanding why they exist. While many of
     us may not like some parts of copyright law we  may discover upon
     looking into  these cases, it is the law. There are procedures to
     follow in order to change these laws, use  them if  you feel they
     are unfair.

          Hopefully some  of the  articles in  this issue will help to
     convince you over to my way of thinking. If not, so be it. I only
     ask  that  we  take  these  messages  out  of  echomail. They are
     accomplishing nothing and succeeding to excessively annoy many of
     us. Before you enter a message about the lawsuits again, take the
     time and read this edition, call those directly  involved, obtain
     the  documents  from  the  courts,  but  STOP THE COMPLAINING AND
     WHINING!!!  Echomail  can  accomplish   so  much,   why  make  it
     accomplish nothing???


     Dale Lovell
     3266 Vezber Drive
     Seven Hills, OH  44131
     data: 216/642-1034
           1:157/504 aka 1:1/1

     -----------------------------------------------------------------


     =================================================================
                                 ARTICLES
     =================================================================

     [NOTE: Message modified by Tim Pozar on 29 Sep 88  13:24:02]
     From  hoptoad!cogsci!SIMTEL20.ARMY.MIL!KPETERSEN
     From: hoptoad!cogsci!SIMTEL20.ARMY.MIL!W8SDZ (Keith Petersen)
     To:   hoptoad!ucbvax.Berkeley.EDU!hoptoad!pozar (Tim Pozar)
     Date: Wed, 28 Sep 1988  11:35 MDT

     [For submission to Fido News special ARC edition]

     Both SEA and PKWare are likely to be in hot water soon.  All we
     want is a PUBLIC DOMAIN archiving system which is immune to this
     nonsense! BTW, ZOO isn't it.  It has a copyright and restrictions
     on distribution.

     DATAPOINT has a trademark (and has had it since the '70s) on the
     word ARC.  As reprinted from a current Datapoint Manual:

     "Attached Resource Computer" is a trademark of DATAPOINT
     Corporation.
     Registered in the US patent and Trademark office.
     "ARC" is a trademark of DATAPOINT Corp.

     Any recent DATAPOINT document has this copyright/trademark
     statement, the document it came from was called "RMS SYSTEM
     ADMINISTRATION UTILITIES" DATAPOINT document Number 50928 Dated
     September, 1985.

     The "RMS Quick Reference Guide" Document No. 61017 contains a
     larger copyright notice.

     A person who is very involved with DATAPOINT and their ARCNET
     configurations said that the Attached Resource Computer is a
     combination of hardware and software, and in fact, they have a
     software program used with ARCNET called "ARC".  He is very
     familiar with DATAPOINT, and said that he will be talking to the
     legal department at the DATAPOINT headquarters in Texas to inform
     them of the lawsuits currently pending between SEA and PKWARE,
     and determine if DATAPOINT wants to pursue legal action of
     their own.

     --Keith Petersen
     Arpa: W8SDZ@SIMTEL20.ARMY.MIL
     Uucp:
     {decwrl,harvard,rutgers,ucbvax,uunet}!simtel20.army.mil!w8sdz

     -----------------------------------------------------------------


     John Herro
     1:363/6


                      MY TWO CENTS WORTH ON PK VS. SEA


     In this controversy,  neither side is 100% right,  but I hope the
     BBS world goes with Phil Katz' new Shareware for several reasons.

     PKxARC is  much,  much faster than ARC.   It also compresses some
     files more than ARC, because it considers Squashing as one alter-
     native.  I'm a Shareware author,  and I'm using a registered copy
     of PKARC to distribute my program  ADA-TUTR,  the Interactive Ada
     Tutor.  I understand that the court order allows registered users
     of PKxARC to continue to use it indefinitely.

     I also understand that  Phil Katz  was ordered to change the file
     extension from .ARC,  which he has done.   After the first of the
     year,  however,  he can no longer distribute the program.  He has
     to come up with another file compression  algorithm.   He expects
     to come up with a new  algorithm  that's  superior  to  ARC.  I'm
     looking forward to seeing his new program!

     Just as ARC has almost completely replaced older schemes like SQZ
     and  LBR,  I  hope that Phil's new scheme will completely replace
     ARC and become the new BBS standard.

     SEA  seems to be leaning toward  commercial  software.  The  only
     reason I won't buy a copy of AXE  is that it's commercial and not
     Shareware.  I'd gladly pay that much  to  register  Shareware.  I
     think  Shareware  is  an idea whose time has come,  and it almost
     completely solves the problem of  software  piracy.   Even if SEA
     keeps  ARC  as  Shareware  for now, who's to say that further im-
     provements won't be commercial,  as happened to Fido?   SEA seems
     to be going in  that  direction.   I  prefer  PK  because I think
     there's  a  greater  chance  that future improvements will remain
     Shareware.

     If Phil's new algorithm is to become the  BBS standard,  a lot of
     software will have to be updated.   Examples are BBS systems that
     can  "look inside"  archives, and "ARCMAIL-like" programs.  Soft-
     ware authors should plan to update as soon as Phil Katz publishes
     his new algorithm.  We changed file compression standards before;
     we can do it again.

     We want the FASTEST and BEST compression to be the standard.  The
     PK  programs have been faster and better than  SEA,  and I expect
     that to continue.

     -----------------------------------------------------------------


     Thom Henderson, president
     System Enhancement Associates
     voice: (201) 473-5153
     data:  (201) 473-1991


                   Now That It's Over, What Did It Mean?

     Now that the dust has settled in the first shareware copyright
     case, it is time for SEA to make public the facts that many
     members of the shareware community deserve to know.

     For the record, SEA is a family owned business.  Andy Foray, the
     company chairman, and Thom Henderson, the company president, are
     brothers-in-law.  Irene Henderson, the secretary/treasurer and
     office manager, is Andy's sister and Thom's wife.

     As the creators, publishers and defenders of the industry
     standard ARC file compression format, we have always maintained a
     strong belief in a fundamental concept of shareware -- that
     shareware be distributed for free for all non-commercial use.  To
     this end, we have never, and will never, charge for the use of
     ARC in a non-commercial environment.  We also believe that full
     program sources should be available, at least to registered
     users, and we have always made the full ARC sources available to
     all users.  We have also licensed a great many people to use the
     ARC sources in their own programs.

     We discovered that PKWARE had obtained our source code without
     obtaining a license.  He modified that code so that the program
     ran faster and provided several other enhancements.  However, the
     nuts and bolts of the program were done by SEA.  That is called
     PIRACY, plain and simple.  And this industry has no place for
     pirates.

     We tried to politely ask PKWARE to obtain a license.  He
     ungraciously told us where to go.

     We asked our lawyer what we should do.  He said we were bound by
     law to protect our rights to the trademark and copyrights on ARC.
     If we did not, then anyone could use the ARC trademark and
     copyrights.  It is very much like a candy bar calling itself
     Hershey.  If another company used the Hershey name without
     permission, you can imagine what would happen.

     Also, it should be noted that PKWARE did not live up to the high
     standards set by the shareware industry.  He didn't make his
     source code available.  He sought out our market and competed
     directly for our corporate market by using the funds he had
     received from non-commercial users (whom we would not charge!)
     He authorized ads with false and misleading comparison statements
     to run in the magazines we advertised in.  And he placed those
     ads on the same pages as our ads.  If we did not protect our
     investment in the ARC trademark, we would have lost our
     trademark, our market and our business.  Furthermore, the
     industry would have been left in disarray, as two standards would
     have emerged.

     So after Phil Katz told us he would not settle this case like a
     gentleman, we were forced to ask the courts to settle it for us.

     We didn't want to go to court.  We couldn't afford the lawyers
     fees.  We couldn't afford the time away from programming the
     updated versions of ARC that will work on other systems, such as
     Unix, Macintosh, and VM/CMS.  And we couldn't afford to create a
     controversy in an industry that we helped to pioneer.  We also
     couldn't afford to create ill will among users -- both our users
     and PKWARE users.  But PKware left us no choice.

     Anyway, the case didn't get very far, thanks to the testimony of
     an expert witness, John Navas.  He looked at the source code of
     both programs and found, lo and behold, that the PKWARE program
     was indeed a blatant copy of the SEA code.

     When Katz heard this, he called us directly -- bypassing the
     attorneys -- and said he wanted to settle.

     We were only too happy to put a quick end to this.  We wanted the
     facts to come out.  Unfortunately, Katz demanded that part of the
     settlement terms be kept under court seal.  We agreed, and we
     probably should not have, but we did because we wanted to end the
     case quickly so we could get back to updating and improving ARC.

     Some of the terms are public: PKWARE cannot distribute the
     program after January 1, 1989, they cannot substantially change
     the program (though they can make bug fixes) and if they receive
     inquiries for the product, they must send out SEA literature.
     Also, PKWARE is prohibited from creating a new program that is
     compatible with ARC or PKARC.

     If those terms sound one-sided, then it only goes to prove the
     extent to which PKWARE felt that it had no legitimate right to
     its program.  After all, why would he give up everything if he
     was right?  He obviously was not above board in this case, even
     though the settlement terms said he was not admitting fault in
     any way (a standard legalese ploy).

     We are a bit perturbed that one of PKWARE's part-time employees
     obtained a copy of the sealed court document, typed it into a
     file along with numerous typos and loaded it onto several
     bulletin board systems.  She also included her own biased,
     editorial opinion on the case and its terms.  While we don't
     believe PKWARE had authorized this action, it obviously violates
     the sense of fair play that we have lived with, at Mr. Katz'
     request.

     Now we are faced with several problems.

     The bulletin board community has heard many comments by people
     who did not possess the facts of this case, and therefore made
     ill informed opinions. Those opinions seemed like fact because we
     did not respond to them while the case was in progress.


     You are well aware that no party in a legal action can really
     speak his mind while the action is occurring.  Because we didn't
     respond, people assumed that we were wrong.

     Well, we weren't wrong and we won't be silent any more.  We have
     begun responding to the outrageous and outlandish opinions
     expressed against SEA.  We realize that people came to the only
     conclusion possible, given the lack of reliable information about
     this case.

     We will respond to any and every comment about this case.  We
     welcome questions and urge people to call us at our office.  When
     the dust settles, no one will doubt our sincerity in trying to do
     the right thing.


     We'd also like to clear up a few basic misconceptions that have
     appeared on the boards:

      -  SEA waited too long to take action.

         Response: The legal world moves slowly.  First we have to be
         aware of the situation, determine that a violation of our
         copyright existed, try to settle amicably and then take legal
         action.  That takes time.

      -  SEA doesn't upgrade it's program.

         Response: We have updated the program nine times in three
         years.  We have made it available for several other operating
         systems, such as OS/2 and CP/M.  We will continue to upgrade
         the program to benefit all users on all systems.

      -  SEA used the courts when it realized it couldn't compete on
         raw programming talent.

         Response: We have a very good program and one that is getting
         better.  We wouldn't be the defenders of an industry standard
         if we didn't have programming talent to begin with.

      -  SEA is a Goliath pursuing a David called Phil Katz.

         Response:  Phil Katz is a not just a person.  He is a
         company, and a big one at that.  PKWARE is a bigger company
         than SEA, despite the fact we publish four programs.  We
         calculate that PKware currently grosses almost $2,000 a day,
         or about five times what we do.  We challenge him to make his
         audited figures public.

      -  PKWARE must be a small company because we hear there are only
         three employees including his mother.

         Response: We applaud Mrs. Katz and wish her the best of
         success.  We too are a family run company.  Andy Foray and
         Thom Henderson are brothers-in-law and Irene Henderson serves
         as secretary/treasurer.  We have hired a programmer and a
         license manager.  We didn't do this because we had a windfall
         profit, we did this because we needed to stay competitive and
         to serve new markets.

      -  SEA should have pursued the case to a jury trial so a
         precedent could be set for the industry.

         Response:  We wish we had the money to support our lawyer to
         take this case to a jury trial conclusion.  However, we were
         eating hot dogs every night and had to take on outside
         consulting jobs to make ends meet.  We needed to end this
         case before the legal fees devoured our company.  Besides, we
         weren't out to crucify the guy -- we just wanted him to stop
         stealing our work.


     If there are more questions, be assured, we will respond to them.

     We have also issued a new policy statement regarding the
     licensing of ARC. It has been uploaded to the IBMSW forum on
     CompuServe, the utilities/archivers conference on BIX, and has
     been disseminated to other BBSes as well. The terms probably are
     the most liberal for any licensing policy for any software
     company.  And if that isn't enough, give us a call and we'll see
     what we can work out.

     We welcome the opportunity to better serve the shareware
     community.  We invite your comments and your suggestions.

     -----------------------------------------------------------------


     =================================================================
                                  COLUMNS
     =================================================================

                                    YACK
                      Yet Another Complicated Komment

                            by Steven K. Hoskin
                        ( STEVE HOSKIN at 1:128/31 )

                        Episode 12:  The ARC Dilemma


     Well, Dale, you asked for it.  Opinions on ARC and the SEA/PKWare
     lawsuit(s).  I'll TRY to keep it on one page.

     I understand SEA has considered  ARC to be its trademark; SEA may
     have even registered such.  That's  fine, but my understanding is
     also that SEA has done  nothing  in  three  years to protect that
     trademark.  I am given to understand that failure to take actions
     to protect  a  trademark  leaves  the  bearer  of  said trademark
     subject to loss of rights to same.

     I understand  that  law  recognizes  that  a  trademark,  even if
     previously registered and accepted, can become generic, and if it
     does so, the bearer  of  the  trademark  loses it.  Monopoly, for
     example, has become generic  in  the  sense that when the average
     person thinks of  Monopoly  they  think  of  the  game and not of
     Milton Bradley  (or  whatever  company  makes  the  stupid game).
     Therefore, Monopoly programs  can  be written without the authors
     being successfully being sued  for  trademark violation since the
     company that makes the game has legally lost the trademark; it is
     now generic.  This fact  has  been  upheld  in at least two court
     cases. (1)

     Has ARC become generic?  If  not,  I'd say it's virtually so now.
     What do YOU refer to  an  archive  as?    Most everyone I've ever
     known calls them ARCs.  "Say,  Steve, what ARC program do you use
     to ARC and deARC your  ARCs?"    "I  use  PKARC because it's TONS
     faster and saves more space, and if I need to I can still use the
     option to make ARCs that ARC can deARC."  If that isn't generic I
     don't know what is.  And THAT came from a REAL conversation.

     I don't mean to say SEA is  wrong  in  this lawsuit (and I hear a
     second one has been filed), but one point stands out clear:

     SEA released source code  to  their  shareware users, opening the
     door to duplicated  procedures  in  other  programs and virtually
     elimating SEA's ability to track  down abusers of that source.  I
     think this fact probably  eliminates  SEA's ability to say it has
     taken sufficient measures to protect "its" trademark.
     _______________
     (1)  Shareware, a magazine that discusses and hosts
     advertisements  for   shareware,   freeware   and  public  domain
     programs.  I do not recall the edition or volume number.



     -----------------------------------------------------------------

		David Deitch, Computer Connection
		dwd0238@wucec1.wustl.bitnet
		Fido 1:100/22

malpass@vlsi.ll.mit.edu (Don Malpass) (10/06/88)

In article <302@wuibc.UUCP> gmat@wuibc.UUCP (Gregory Martin Amaya Tormo) writes:
>
>....  I wish there had been another way because we have all lost from
>this mess.  ...Let us stop wasting money and time
>debating the issue any further. ... I believe
>that all archive sites currently banning SEA archives should end the
>protest as it is a mute point based on the now known facts.  I encourage
>the use of both ARC and ZOO (although I have never used it), and challenge
>programmers out there to port the current ARC and ZOO version to unix, and
>to take SEA up on their source code policy and use it to create ARC to ZOO
>and ZOO to ARC converters....
>....  I challenge SEA to upgrade ARC to utilize the features and speed that 
>endeared me to the PKware programs in the first place.  I see no need to
>fight for a new standard, nor any reason to abandon the current one.

	This, on top of the "Brief History of Archiving" is almost more
reasonable talk than I can handle.  I s'pose there would be too much
crow to eat for SEA to subcontract to Katz to provide the fast
DOS machine-code version of generic ARC.  Perhaps we can at least agree
to a 5-day moratorium on further discussion while we ponder this wisdom
and calm down enough to get on with the business at hand, leaving the
politics to the retards in Congress [forgive the redundancy].

	However,
>...protest as it is a mute point based on the now known facts.
                       ^^^^
I think you intended to say "MOOT" point.  It is my continuing fervent
hope that these points and the whole damn issue rapidly BECOME mute.
Anyway, thanks again for a glimmer of sanity in this imbroglio.
-- 
Don Malpass   [malpass@LL-vlsi.arpa],  [malpass@spenser.ll.mit.edu] 
  My opinions are seldom shared by MIT Lincoln Lab, my actual
    employer RCA (known recently as GE), or my wife.