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Technology Stocks : Systemsoft Inc. (SYSF)

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To: Mike Winn who wrote (365)9/19/1996 9:24:00 AM
From: Tim Oliver   of 3529
 
Mike, Intel didn't even get an exclusive license for all the software
they purchased/will purchase from PTEC under their technology
agreement, even though Intel also bought 6% of PTEC at the same
time (with warrants to buy more)!

The term "license" in the computer industry is basically synonymous
with "purchased". The only difference is that a license has very
specific legal restrictions primarily to the licensee (buyer). Read the
license agreement that comes with your software to see an example
of the terms. Similar restrictions apply to other electronic media such
as videos.

Whenever you see an exclusive agreement, it will go beyond a
license and be very specific about the exclusivity. If SYSF did
not specifically state this, then there is almost 0% chance that
they got one.

In contrast, Phoenix Tech. just got an exclusive marketing/
development agreement with Cybermedia for the PC & motherboard
distribution channel. This was made very clear (although investors
such as yourself apparently were not aware of the difference).
That showed incredible faith on Cybermedia's part in PTEC, since
Cybermedia is already an established leader in the "call avoidance"
arena. I'll admit even I was astounded. PTEC must be even a
more important player than I thought.

The rule of thumb is NEVER expect a Microsoft, Intel, DEC or
any other established player to give exclusivity. They don't need
to. It would be nice to think SYSF got exclusive knowledge
bases (and they'd love for you to fantasize this), but it is highly
unlikely. If you prove me wrong (by quotes using the term
"exclusive" in their press releases), I'll admit I'm wrong.

Good luck!
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