RSA Security Inc. (RSAS) Message Board

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Technology Stocks : RSA Security Inc. (RSAS)

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To: Nikita who wrote (205)	2/24/2000 7:28:00 PM
From: Jerry Whlan	Read Replies (1) of 374

It is the patent on the company's namesake, the RSA public key encryption algorithm. Company officials have been stating since at least september of 1999 that they expect the patent expiration to have no material impact on revenues. RSA is wrapped up in a much larger encryption toolkit that they sell, called B-Safe. B-Safe provides not only a rock-solid RSA implementation but implementations of other encryption algorithms, some of them patented, some of the freely implementable. B-Safe is regarded as the heavy-duty industrial strength encryption toolkit and all of the companies that take encryption seriously as part of their own products use B-Safe. It is unlikely that the expiration of the patent on RSA will make some other company's implementation of RSA more attractive than B-safe. B-Safe has been around for many years, is well tested (a very important characteristic in the security biz) and already embedded in thousands of products. Any newcomer would have to overcome tremendous inertia to make a dent, and RSA seems to believe that merely competing on price will not be enough for a newcomer to significantly erode their market position.

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