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Technology Stocks : Apple Inc.

AAPL 259.06

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Jan 8 3:59 PM EST

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To: Michael Feldstein who wrote (13292)	5/10/1998 1:15:00 PM
From: Michael Feldstein	of 213181

Apple changed Quicktime licensing terms. This ought to calm the multimedia developers a bit. --------- Dear QuickTime Developer, Apple's QuickTime 3 has been very well received by both customers and the computer industry for the landmark product that it is. We appreciate the great support so many of you have shown for it. The end user downloads continue to amaze us with no let-up in sight. A great many customers are choosing to purchase Apple's QuickTime 3 Pro and many of you have begun to license QuickTime 3 for distribution with your products. We have also had requests from many of you for modifications to a few of the QuickTime Software Distribution Agreement (SDA) terms. We have been compiling these requests in order to come up with the best solution to meet both your varied distribution needs and our growing QuickTime business. The resulting solution will include both modifications to the QuickTime SDA and to the QuickTime installers to ensure that many developers will not need to modify their applications in order to comply with the modified agreement terms. We value our developer relationships and hope that the modifications that we have made will meet many of your requests. Both the modified QuickTime SDA documents and an updated QuickTime 3 set of installers will be made available before the end of May. Please take a moment to review the brief summary of key modifications below and then visit Apple's software licensing web site at developer.apple.com to review the complete documents in their entirety once they are posted.... <snip> 1. QuickTime Free Distribution The modified QuickTime SDA will enable QuickTime 3 Software to be distributed for free with a software or hardware product simply by using Apple's new QuickTime 3 installer as part of the licensee's product's installation procedure or by asking that the user runs the new QuickTime installer if the licensee's product has no installation procedure. The QuickTime 3 installer must be invoked regardless of whether the user already has QuickTime 3 (the installer will manage situations where QuickTime 3 is already installed). The new installer will play a graphic ad for QuickTime 3 Pro (requiring no user interaction) once during installation and place the "Get QuickTime 3 Pro" interactive movie on the user's desktop once during installation. 2. QuickTime "No-Ad" Distribution The modified QuickTime SDA will continue to offer the choice to distribute QuickTime 3 without playing the graphic ad for QuickTime 3 Pro or placing the "Get QuickTime Pro" interactive movie on the desktop for $1 per unit. Apple will provide a "no-ad" version of the QuickTime 3 installer that does not play the graphic ad or place the "Get QuickTime Pro" movie on the desktop for these agreements. There will also continue to be the same choice to distribute QuickTime 3 Pro for $2 per unit. These royalties will be based on products distributed but will also allow for credit against returns. <snip>

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