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Technology Stocks : RSA Security Inc. (RSAS) -- Ignore unavailable to you. Want to Upgrade?


To: John F Beule who wrote (286)9/7/2000 3:10:07 PM
From: Norm Demers  Respond to of 374
 
100 a share sounds about right considering the high this year and where they are now.



To: John F Beule who wrote (286)9/8/2000 8:09:43 AM
From: Norm Demers  Respond to of 374
 
Primed and ready
By Sam Williams
September 07, 2000

Perhaps hoping to stifle any Mozilla-type celebration within the anti-software patent community, RSA Security (RSAS), official administrators of the RSA public key encryption patent, dumped their crown jewel into the public domain on Wednesday, two weeks ahead of schedule.

Originally granted on Sept. 20, 1983, the RSA algorithm patent was set to expire on the 17th anniversary of that original grant due to federal patent law.

"So much misinformation has been spread recently regarding the expiration of the RSA algorithm patent that we wanted to create an opportunity to state the facts," said RSA Security Chief Executive Officer Art Coviello in a Wednesday press announcement.

One of the chief facts Coviello wanted to point out was the online economy's utter dependence upon public key encryption as a "foundation" for secure online commerce. While this multibillion dollar dependence on a single company is the primary reason many members of the software development community object to the notion of patenting algorithms, Coviello saw it as a positive testament to the San Mateo, Calif.-based company's marketing skills.

Symbolic step

"Releasing the RSA algorithm into the public domain now is a symbolic next step in the evolution of this market," Coviello said.

Both RSA Security and the RSA algorithm get their names from Ronald Rivest, Adi Shamir and Leonard Adelman, the three MIT scientists who in 1977 first developed the mathematical formula for public key encryption. After receiving a patent on their algorithm in 1983, the three scientists co-founded RSA Security, the company that licensed RSA.

Since 1983, RSA has become something of a de facto standard for electronic cryptography, being used in everything from credit card machines to email security to mobile phone scramblers.

Although the algorithm's public domain makes it possible for developers to use it for free, a factor which should significantly lower the cost of high-end cryptography software, it is unclear how this will affect the open source community. RSA Security has spent the past three years building upon its RSA base, developing additional closed source encryption tools. A number of open source companies, including Red Hat (RHAT) and Covalent Group (CVGR), license these tools in addition to the RSA patent.

"The RSA key algorithm that has been released into the public domain is only a small part of the code needed to provide SSL services in Apache, for example," says Randy Terbush, chief executive officer of Covalent, which develops Raven SSL, an Apache security module. "While this release does eliminate the patent issue and the need to license this code from RSA, it does not eliminate the issues we face in exporting a product with cryptography in it.

"We also are licensing the entire RSA SSL-C crypto engine in our product to take advantage of RSA's experience providing cryptography code to the software industry. This announcement does not really change anything from our perspective."

Theo De Raadt, project leader for OpenBSD says the security conscious decision may incorporate a free version of RSA in the next release, slated for December. Then again, OpenBSD users have always had a way around the patent.

Because the patent only applies inside the U.S., non-U.S. users simply could download a library package that included RSA functionality via OpenBSD's Canadian servers. U.S. users could, too, provided they were willing to run the risk of antagonizing RSA Security's lawyers.

Getting around the system

"I would guess that 99 percent of our users install one of the ssl library packages to activate ssh, httpsd, and the various ipsec components that want RSA features," writes DeRaadt via email. "The expiration just means that the remaining one percent of users who were afraid can install it anyways."

Despite the early release, some hacker groups are still planning to celebrate the Sept. 20 release date. Both the Bay FF, a Bay Area version of the Electronic Frontier Foundation and Bay Area Cypherpunks are planning to commemorate the events.

Dave Del Torto, a member of the Bay Area Cypherpunks who will speak at the BayFF event on Monday, says his group is planning a party of its own somewhere on or near the 17-year anniversary.

Event time and location have yet to be announced, but Del Torto says his group will be aiming for something closer to the original Mozilla source code release party in 1998. "It will be a doozy," he said.

As for the timing of RSA Security's announcement, Del Torto said it shouldn't affect crypto-hackers' enthusiasm.

"The party is all about the future of crypto and human rights, and not about dwelling in the past," he said. "The only thing it may have changed is that it may make it easier for Jim Bidzos and the RSA Labs folks to show up."


Sam Williams is a freelance writer covering open source software and high-tech culture. If you would like to submit a letter to the editor regarding this story, email online@upside.com
upside.com



To: John F Beule who wrote (286)9/8/2000 9:10:51 AM
From: Norm Demers  Respond to of 374
 
from the Boston Globe:

this should make BALT a bundle, glad I don't own any.

"Baltimore Technologies of Needham said it plans to give away to software developers toolkits that RSA would previously have claimed violated its patent"

RSA SECURITY TO RELEASE SOFTWARE CODE EARLY

FIRM SEEKS TO REASSURE INVESTORS AS PATENT ENDS
Author: By Ross Kerber, Globe Staff Date: 09/07/2000 Page: C6 Section: Business
TECHNOLOGY & INNOVATION With a key encryption patent about to lapse, RSA Security Inc. said it would release its code two weeks early in an effort to reassure investors its follow-on products will secure the Bedford-based company's own sales.
RSA's software is used to scramble digital text to make it safe for Internet transmission. The company's early deals to have it included in browsers made by Microsoft Corp. and Netscape Communications made it a standard for sending credit-card numbers and other information via the Web.

The technology is based on a 1983 patent assigned to the Massachusetts Institute of Technology and licensed to RSA. It has enabled RSA to dominate the US market for encryption software. Competitors have gained ground overseas, however, and are vowing to sell more software at RSA's expense now that the patent is ending.

For instance, Baltimore Technologies of Needham said it plans to give away to software developers toolkits that RSA would previously have claimed violated its patent.

"We're going to set the market on its edge," said Andy Morbitzer, a Baltimore marketing executive. Some percentage of these developers would likely buy other Baltimore products, he said.

RSA chief executive Art Coviello said he's not worried. Royalties from its patent amounted to just around $550,000 of its revenue of $218 million last year, he said, and the company has new products ready.

For instance, the company rolled out a new version of its "BSafe" software to allow software developers to include features for recognizing digital signatures and for securing wireless signals.

Like the old, the new software makes use of an encryption algorithm protected by a patent. Coviello said the company decided to release the code early to counter what he called "misinformation" spread by competitors that RSA would be less competitive after the expiration.

On the contrary, he said, sales have increased by 20 percent this year following the lifting of export restrictions by the US Commerce Department, which once was more concerned the software could be used for incorrect purposes.

RSA has about 1,000 employees, including 500 in Massachusetts. The company was previously known as Security Dynamics, and changed its name following its 1996 acquisition of RSA Data Security Inc. of San Mateo, Calif., for stock worth about $200 million.

RSA was founded by three former MIT students, one of whom, Ronald Rivest, now teaches at the university. Coviello declined to discuss the company's royalty payments to MIT but said they have sustained a chair in the mathematics department there



To: John F Beule who wrote (286)9/11/2000 8:31:59 AM
From: Norm Demers  Read Replies (1) | Respond to of 374
 
Western Union hacked, 15,000 CC numbers taken
By: Thomas C Greene in Washington
Posted: 11/09/2000 at 04:55 GMT

Emergency fund service and salvation of the world's bail bondsmen, university students and cornered deadbeats Western Union admitted late Sunday that malicious hackers compromised the credit card details of 15,700 customers who had transferred money on their Web site, which was left unprotected while undergoing maintenance, the Associated Press reports.

The company began notifying affected customers via telephone and e-mail over the weekend, and by late Sunday had informed Visa and MasterCard about which accounts had been affected.

No cases of fraud have yet been reported (give it time, lads), and Visa and MasterCard have begun monitoring affected customer accounts for unusual activity, the wire service quoted Western Union spokesman Peter Ziverts as saying.

Online money transfers account for an "absolutely minuscule" portion of the company's total transactions, Ziverts noted.

He indicated that the problem was caused by brain-dead sysadmins rather than a basic network flaw. Employees conducting routine maintenance inadvertently left the system unprotected, allowing intruders to waltz in. He added that it was not an inside job, but we'll just wait till the FBI is finished with their investigation before swallowing that one.

Western Union first detected the attack on Friday. The company has since set up a free number in the US for claims and complaints at 1-800-228-6530. ®