Date: 28 Sep 2000 06:15:12 -0400 Message-ID: <20000928101512.22464.qmail@xuxa.iecc.com> From: owner-telecom-digest@telecom-digest.org (Telecom Digest) To: telecom-digest@telecom-digest.org Subject: Telecom Digest V2000 #69 Reply-To: editor@telecom-digest.org Sender: owner-telecom-digest@telecom-digest.org Errors-To: owner-telecom-digest@telecom-digest.org Precedence: bulk X-UIDL: 99da0b5e35e48f74e0682eb7ae3597d9 Status: RO X-Status: Telecom Digest Thursday, September 28 2000 Volume 2000 : Number 069 In this issue: Judiciary Committee Backs E-Mail-Snooping Restrictions DSC/Alcatel .vs. Evan Brown, the saga continues Re: DSC/Alcatel vs. Evan Brown, the saga continues Carnivore Review Team Exposed! Idealab F*cks With F*ckedCompany Are digital signatures a threat? 9/27/00 ICBTollFree.Com HEADS UP HEADLINES ---------------------------------------------------------------------- Date: 27 Sep 2000 08:30:36 -0400 From: Monty Solomon Subject: Judiciary Committee Backs E-Mail-Snooping Restrictions Judiciary Committee Backs E-Mail-Snooping Restrictions The powerful House Judiciary Committee sent a pointed message to the nation's law enforcers today, voting 20-1 to approve legislation requiring investigators to show evidence before obtaining citizens' phone and e-mail records. http://www.newsbytes.com/pubNews/00/155737.html - -- The Telecom Digest is currently robomoderated. Please mail messages to editor@telecom-digest.org. ------------------------------ Date: 27 Sep 2000 13:44:04 -0400 From: Evan Brown Subject: DSC/Alcatel .vs. Evan Brown, the saga continues Wednesday September 27, 2000 DSC/Alcatel .vs. Evan Brown, the saga continues I have disclosed my "idea" to the court so now DSC has my "idea." I worked at DSC facilities (PB-6 building, Plano, TX) from June 26th until Sept 6th. DSC provided a small conference room with computer equipment and a security guard (to watch over my shoulder as I worked and keep track of potty breaks etc.). Since Sep 6th, I've worked on the disclosure from here at the farm. DSC is very creative. Back on Aug 23rd, DSC brought in a new security guard (Christina) to click her pen, shuffle her jacket and rattle papers while I tried to concentrate. Christina was also very sick with a cold/flu. I asked her to stay outside the room but Kay Gregory (secretary for Chris Cole, assistant general council for DSC) ordered Christina to stay in the room with me. Guess what? I caught the cold and have been sick ever since. I went to the medical clinic in Hamilton about 10 days ago because I was only getting worse. I learned that I had developed a form of pneumonia and the medication was $8.44 per pill. I'm doing better but at least I finished my disclosure. I thought a lot about how to "fully and completely" disclose my "idea" such that my disclosure would satisfy the court. I'm a technical computer programmer, not a writer. It occurred to me that if I gave them a working computer program that implemented my "idea", that would certainly constitute a full and complete disclosure. A working computer program would show that, not only was all the logic there, but it would also show that my "idea" does work. My "idea" does work. - Evan Brown PS. This article in the Bloomberg News just came out today - --------------------------------------------------------------- Evan, here's the wire version of the story. The magazine version should be out in a week or so, and I will mail you a copy when I get it. Please keep me posted on events as they unfold. I may check back with you from time to time. Thanks again, Loren Alcatel, Fired Worker Tangle Over Who Owns Software Idea 9/27/0 3:21 (New York) Alcatel, Fired Worker Tangle Over Who Owns Software Idea (Published in the October issue of Bloomberg Markets magazine.) Farm-to-Market Road 219, outside Fairy, Texas, Sept. 27 (Bloomberg) -- For 14 weeks starting in June, Evan Brown climbed into his dust-covered Ford pickup and drove 160 miles from central Texas to Alcatel SA's U.S. headquarters near Dallas, compelled by a state judge's order to divulge one of his few remaining assets: his thoughts. DSC Communications Corp., now owned by Paris-based Alcatel, fired Brown in 1997 after he refused to divulge his idea for software that would modernize DSC's telephone switches, which route calls over the world's phone networks. Then DSC sued Brown, charging that he'd breached a contract that required him to turn over inventions to the company. Out of a job and out of money, Brown, 48, has had little choice but to shed the trappings of his former success. He sold his Cessna 210 single-engine plane and used the cash to build a metal barn on 300 hardscrabble acres northwest of Waco, where he weathered months of 100-degree days before installing air- conditioning. He brings in about $2,000 a year by leasing his land to farmers -- in stark contrast to his $100,000 annual salary at DSC. Long gone are his single-story brick home on a tree-lined cul-de-sac in the Dallas suburb of Plano, his Mercedes 300 SD sedan, and his prized gun collection: rifles, shotguns, and pistols he'd acquired since college. The Battle for Ideas While Brown's situation may be extreme, the issue that's driven him into such dire circumstances has become increasingly important in an economy powered by technology -- and the people who invent it. Companies such as Alcatel are getting more aggressive in cases involving employee ideas -- officially dubbed ``intellectual property'' -- as they fight to keep knowledge they deem vital from falling into competitors' hands. Legal experts predict the number of suits against workers and rival companies will balloon as competition for skilled employees intensifies and turnover in engineering jobs runs as high as 15 percent. This year alone, some of the biggest names in the computer world -- including Intel Corp., Cisco Systems Inc. and Lucent Technologies Inc. -- are involved in trade-secret suits. ``There's absolutely no question we're seeing more intellectual property disputes and disputes with departing employees,'' says Michael Epstein, head of the technology and proprietary rights practice at New York law firm Weil, Gotshal & Manges. ``It's a huge concern among high-tech companies.'' High Stakes The cases can involve considerable stakes. Brown estimates he's spent $500,000 on legal fees. He says he can't find work aside from the occasional consulting agreement because no employer wants to take on his legal woes. What's worse, the court order forced him to spend more than three months at his former workplace to develop and test his software idea -- without pay, without a stipend for his expenses, and with little hope of benefiting from what he estimates is a $1.5 billion market for his idea. ``They're trying to make an example out of me for all their other employees,'' Brown says from under the brim of his white cowboy hat, his boots lacerated from the limestone rock that dots his farmland. ``They are not entitled to this. Corporations cannot own parts of people. They can't own your brain.'' Alcatel doesn't agree. ``We have lots of assets, but there are no assets anywhere near as valuable as our intellectual property,'' says George Brunt, Alcatel's U.S. general counsel. ``The competition is all based around who can innovate.'' Lawsuits Galore Europe's second-largest phone equipment maker has suits pending against big companies such as Cisco and start-ups including optical switch developer Chiaro Networks Ltd. In the past four years, Alcatel -- and DSC before it -- have won most of them, collecting a judgment of $140.7 million against Next Level Communications Inc., in 1997. That's a hefty sum, considering some intellectual property cases are settled for no more than legal fees and an agreement to keep workers from disclosing secrets at the new job. Alcatel isn't alone. Fujitsu Ltd. is suing Cisco, claiming the No. 1 maker of networking equipment hired 27 Fujitsu workers to steal secrets about communications gear. Fujitsu filed the case in December 1999 in the courthouse where Brown's suit is pending. Employees as Suspects In March No. 1 computer-chip maker Intel sued Broadcom Corp., a fast-growing rival in which Intel was an early investor. The suit claimed Broadcom hired four Intel workers to gain designs and marketing plans for communications chips. A state district judge in California, where the case was filed, ruled in May that three of the employees hadn't revealed Intel secrets. The judge issued an injunction against the fourth, preventing him from being hired because he had allegedly mentioned confidential Intel information in his job interview at Broadcom. Intel fired a new round in August. It sued Broadcom in federal district court in Wilmington, Delaware, and accused its rival of using a ``carefully crafted plan'' to build its business with Intel patents for cable and high-speed networking products. Broadcom responded that Intel is simply trying to discourage its employees from seeking better jobs. More Than Tech Companies Companies outside the computer industry aren't immune. In one of the most publicized cases, No. 1 retailer Wal-Mart Stores Inc. accused Amazon.com Inc. of raiding 15 top workers in 1998. The suit, filed in Arkansas state court in October of that year, claimed the biggest Internet bookseller and Drugstore.com Inc., in which Amazon holds a 23 percent stake, wanted Wal-Mart's expertise in computerized systems to help Amazon sell more general merchandise. The companies settled in April 1999 after Amazon agreed to limit the duties of former Wal-Mart executives and consultants. The companies also agreed not to solicit each other's employees for a year. No money changed hands. Legal Muscle Brunt, the Alcatel general counsel who had the same job at DSC, says his company has an obligation to protect information that could be ferreted away by workers and used against it. When Alcatel bought DSC in 1998, it inherited Brunt's legal strategy and his formidable track record in court. DSC's biggest victory was its $140.7 million judgment against Next Level, now majority owned by Motorola Inc. The company claimed two workers had formed Next Level while at DSC and had used DSC technology to make Next Level's set-top boxes for cable TV service and Internet access. In December Alcatel squared off in a Dallas courtroom with Samsung Electronics Co., accusing the Korean company of stealing designs for phone switching systems by hiring Alcatel workers. The companies settled out of court in January. Terms weren't disclosed. Brunt rejects any notion that his company is a legal bully. ``We've had some high-profile cases and some big judgments that have put it a little more in the limelight,'' he says. ``One of the primary vehicles for companies to protect their intellectual property is to go to court.'' Top Secret The first line of defense for companies anxious to protect intellectual property is to get employees to sign confidentiality agreements, says Epstein, the Weil Gotshal attorney. ``The rule is that any confidential information that an employee learns during the employee's job belongs to the employer,'' he says. Even so, courts are finding it harder to distinguish between confidential information and general knowledge. Also, intellectual property is still a relatively young branch of jurisprudence, meaning, courts must look to different areas of the law -- from contracts to patents -- for guidance. In many cases, Alcatel has used an argument termed ``inevitable disclosure.'' The concept stems from a 1995 federal appeals court ruling in Chicago involving soft drink maker PepsiCo Inc. and Quaker Oats Co. PepsiCo sued over Quaker's hiring of a key PepsiCo executive, William Redmond. The court found that Redmond knew about PepsiCo's marketing plan for its All Sport drink and that he inevitably would use his knowledge to help Quaker market its rival Gatorade. ``Redmond could not be trusted to avoid that conflict of interest,'' the appeals court said. The ruling prevented Redmond from doing his job for six months and from ever disclosing PepsiCo secrets. ``I was at Quaker, but basically on the bench,'' says Redmond, who left in 1996 to join Garden Way, a Troy, New York, maker of tillers, snow blowers, and lawn mowers. Sue First, Question Later For high-tech companies, simply getting a new design to customers first often ensures success. The process can go into warp speed when new technology is at stake. A microprocessor, for example, can move from design to production in 12 months compared with two to three years for a new car. ``As the economy and technology move faster, people do rely on other ways of keeping their information confidential,'' says Chuck Oslakovic, an attorney specializing in trade-secret law at Chicago firm Leydig, Voit & Mayer. That may mean suing departing employees as a preemptive strike against a future competitive threat. For Brown it's meant spending eight hours a day at Alcatel's offices hunched over a computer screen. He says that Alcatel forbids him to leave the room to go to a vending machine, and an employee assigned to watch him notes his rest room breaks. Billion-Dollar Idea? The idea that has spawned so much trouble sounds simple: develop software that translates outdated computer languages into one that today's machines can understand. So far, though, no one has created a program that can read all the quirks in the older systems. ``This could be extremely valuable if there's anything behind the idea,'' says Brunt, who believes the concept has merit because Brown is ``an expert in developing software tools.'' Brown claims he began working on the idea as far back as 1976, 11 years before DSC hired him. When he joined DSC in April 1987, he signed an agreement that he would disclose any inventions related to his job as a software designer. In 1996 the solution to the computer code problem he'd been pondering came to him. He filed a notice with DSC's legal department in April of that year saying he had developed his idea ``from my own personal experience and on my own time.'' He asked the company to issue a release, stating that his idea wasn't covered by his employment agreement because it involved ``software reverse engineering'' -- basically taking modern computer code, breaking it down, and rewriting it in the outdated language. ``DSC is not in the business of software reverse engineering, and my job at DSC does not involve reverse engineering,'' Brown wrote in his April 19 notice to DSC. Slippery Slope DSC disagreed, and the company and Brown spent almost a year trying to reach a compromise. Brown says he went on vacation to Europe in April 1997 and returned to find he'd been fired. DSC sued days later, claiming Brown was trying to sell the concept to competitors. Brown says that wasn't the case. Few things have gone Brown's way since. In June 1997 State District Judge Curt Henderson ordered him to disclose the idea to attorneys and DSC engineers. Brown claims he explained the concept to the DSC team but the team couldn't make it work. DSC argued the disclosure wasn't complete, and the judge agreed. In January of this year, Henderson again ordered Brown to disclose the idea. The judge sanctioned Brown for failing to properly reveal it the first time and awarded DSC 20 percent ownership should it be patented. In other words, Alcatel will get 20 percent of any revenue if the idea is successful. So far, neither side has sought a patent. Brown filed for bankruptcy in late January, delaying the suit even longer, in part because the bankruptcy court had to determine whether the idea was an asset. Legally, the idea is worthless because no one's offered to pay for it, the bankruptcy judge decided. The case began moving forward again in June, when Brown was ordered to report to DSC's headquarters and begin the disclosure. No Shower, Lots of Armadillos Brown now calls home his farm near the hamlet of Cranfills Gap in the Texas Hill Country. Except for a high-speed phone line, his new residence offers few amenities. Even a shower is a mile down a dirt road in a farmhouse that his sister is restoring. The turn of events has left him plenty of time to ruminate as he watches deer congregate near a cedar brake at dusk and chases armadillos that root around in his garden. He's determined to implement his invention on Alcatel's computers so the company can't again claim he's holding back. Only after the judge finds Brown has fully revealed the idea can the case go to trial, where Brown believes he finally may prevail. ``The only chance I have is, get before a jury,'' he says. Brunt says Alcatel is equally determined to fight for valuable intellectual property. One of the few things he and Brown agree on is that the software could be worth more than $1 billion. As Brown wraps up the disclosure this week, he says he has seen signs that the idea would work, which makes his ordeal even tougher because it could mean giving Alcatel what he has spent years trying to protect. ``That really eats on me, but I'm not going to give up,'' he says. ``My freedom of my thoughts is worth everything I own or possess.'' - --Loren Steffy in Dallas (214) 740-0870 or at steffy@Bloomberg.net with reporting by Daniel Tilles in Paris through the Princeton newsroom (609) 279-4000/gcr. Story illustration: To compare the performance of Alcatel's American depositary receipts with the Standard & Poor's 500 Index, see {ALA US COMP } - -- The Telecom Digest is currently robomoderated. Please mail messages to editor@telecom-digest.org. ------------------------------ Date: 27 Sep 2000 19:57:09 -0400 From: John De Hoog Subject: Re: DSC/Alcatel vs. Evan Brown, the saga continues Evan Brown wrote... >DSC/Alcatel vs. Evan Brown, the saga continues > >I have disclosed my "idea" to the court so now DSC has my "idea." This highly interesting and difficult issue reminds me of a major difference between the US and Japan. That's the relationship one has with one's employer. Traditionally, the Japanese have been fiercely loyal to their company, so that the distinction you make regarding your own idea, developed on your own time, would not even exist here. If your idea could help your company win out over other companies, that would be all that mattered to you. I don't want to get into which way is best (and obviously things are changing in today's Japan); but it strikes me that if someone wants to develop ideas on their own and sell them to the highest bidder, they should start their own company (venture business), not be sitting at the desk of a big firm like DSC/Alcatel that might reasonably be expected to have an interest in such technology. As you've discovered, it's pretty hard to have it both ways. - -- John De Hoog, Tokyo http://dehoog.org - -- The Telecom Digest is currently robomoderated. Please mail messages to editor@telecom-digest.org. ------------------------------ Date: 27 Sep 2000 21:58:59 -0400 From: Monty Solomon Subject: Carnivore Review Team Exposed! Carnivore Review Team Exposed! by Declan McCullagh 12:30 p.m. Sep. 27, 2000 PDT Call it the Curse of Carnivore. It was bad enough when word leaked out this summer that the FBI's electronic eavesdropping system went by the unfortunate, if eerily accurate, name of Carnivore. The Feds took another blow when researchers at MIT and other prestigious institutions refused to undertake a review, likening the probe to a public relations whitewash. Now it turns out that an embarrassing oversight by the Justice Department has revealed confidential information about the team of researchers hired to conduct the review. http://www.wired.com/news/politics/0,1283,39102,00.html - -- The Telecom Digest is currently robomoderated. Please mail messages to editor@telecom-digest.org. ------------------------------ Date: 27 Sep 2000 22:01:38 -0400 From: Monty Solomon Subject: Idealab F*cks With F*ckedCompany Idealab F*cks With F*ckedCompany by Craig Bicknell 3:00 a.m. Sep. 27, 2000 PDT Idealab has made it clear: It won't be f*cked with. On Monday, the Net incubator sent a cease-and-desist letter to the operator of the dot-com death-chronicle site FuckedCompany.com, demanding that he remove a parody of Idealab's home page that replaced the word "idealab!" with "FuckedCo!" http://www.wired.com/news/business/0,1367,39086,00.html - -- The Telecom Digest is currently robomoderated. Please mail messages to editor@telecom-digest.org. ------------------------------ Date: 27 Sep 2000 22:14:00 -0400 From: Monty Solomon Subject: Are digital signatures a threat? Are digital signatures a threat? Expert warns of potential for identity theft By Will Knight ZDNET LONDON, Sept. 26 - Do we need to worry about government tracing and identity theft? A leading technology expert has warned that digital signatures, an increasingly prevalent Internet security technology, could hail a future devoid of privacy. http://www.msnbc.com/news/467900.asp - -- The Telecom Digest is currently robomoderated. Please mail messages to editor@telecom-digest.org. ------------------------------ Date: Wed, 27 Sep 2000 23:12:30 -0400 From: "Judith Oppenheimer" Subject: 9/27/00 ICBTollFree.Com HEADS UP HEADLINES ************************************************************************* ICBTollFree.Com HEADS UP HEADLINES ************************************************************************* from ICB Toll Free News - Daily News and Intelligence covering the Political, Legal and Marketing Arenas of 800 and Dot Com. ************************************************************************* CONTENTS - - VENDOR SELECTION CRITERIA FOR DEALER LOCATOR APPS - - GLOBAL GLUEBALL - AND TOO MANY COCKS IN THE KITCHEN - - REGISTER.COM: BELLY UP, OR ON THE REBOUND? - - WITH NO ONE IN CHARGE OF THE HENHOUSE, NSI GRABS FOR THE ROOSTER - - FCC URGES RENEWAL OF TECH COUNCIL CHARTER - - NISSAN.COM: DAVID VS. GOLIATH - - DOW JONES LOSES UDRP - - TM TLD COULD CURE DOMAIN LITIGATION ************************************************************************* !!! YOUR TEXT AD HERE !!! 18,000+ weekly readership, over 112,000 targeted impressions every month! Space is limited -- ORDER NOW! -- email editor@icbtollfree.com. ************************************************************************ CUSTOMER SERVICE NOTE: Click here to see what candidates for ICANN's board have to say about domain name issues: http://icbtollfree.com/icbsurveycandidates.html. Updated as survey responses come in. ICB is a popular research destination, with all content archived indefinitely. Find all ICB headlines, current and archived, at http://www.icbtollfree.com/icbheadlns.cfm. ************************************************************************ ARTICLE ACCESS CODE LEGEND ICB Toll Free News offers two valuable service options: F = Free - News and Features articles P = Premium - Unlimited Site Access including all Articles and Documents. ************************************************************************ HEADLINES for September 27, 2000 P - VENDOR SELECTION CRITERIA FOR DEALER LOCATOR APPS Toll-free dealer locator systems, also known as point-of-call routing systems, play an important role in the marketing initiatives they support. In fact, they are often synonymous with the company itself (e.g. 1-800 By Ryder). Selecting the right service provider for these applications is crucial. Part I of a two-part article by Paul Langhorst of 800 Adept, Inc. CONTINUED HERE: http://www.icbtollfree.com/article.cfm?articleId=4564 F - GLOBAL GLUEBALL - AND TOO MANY COCKS IN THE KITCHEN In "ENUM: the Internet's Glueball infrastructure", A.M. Rutkowski, VP for Internet Strategy at VeriSign-NSI, describes how "the core ENUM infrastructure will substantially reside within the Internet's Domain Name System. However, it elegantly spans the multiple integrating worlds of public telephone and telecommunication networks, wireless devices, home networks, digital certificates, geospatial systems, and just about anything and everything that is reachable through internetworking. The system hierarchy is constructed around a combination of both E164 public telecom numbers as well as private numbers." CONTINUED HERE: http://www.icbtollfree.com/article.cfm?articleId=4563 F - REGISTER.COM: BELLY UP, OR ON THE REBOUND? The company's stock has soared to $116, and dropped to $6.75. But its balance sheet is loaded with cash, about $180 million at the end of the second quarter, and analysts says its likely to turn slightly profitable in the fourth quarter and be solidly profitable for all of 2001. CONTINUED HERE: http://www.icbtollfree.com/article.cfm?articleId=4562 F - WITH NO ONE IN CHARGE OF THE HENHOUSE, NSI GRABS FOR THE ROOSTER We have what anyone would call a delicate situation. Guest Editorial by Gordon Cook. CONTINUED HERE: http://www.icbtollfree.com/article.cfm?articleId=4561 ************************************************************************* **************************************************advertisements********* >>>>>>>>>>>>> http://1800TheExpert.com <<<<<<<<<<<<< 800 & Domain Name Acquisition Management, Lost/Stolen 800 # Retrieval, Litigation Support, Regulatory Navigation, Correlating Domain Name & Trademark Matters. ************************************************************************* Are you a local or regional business that advertises in newspapers, direct mail, on radio or tv? 1 800 BRAND IT shared use marketing programs can help your sales skyrocket! http://www.1800BrandIt.com ************************************************************************* FT Telecom Conferences In its 20th year, this event will bring leading personalities in the telecomms industry to discuss opportunities and challenges which technological advancement, increased competition and restructuring will pose to the future of global telecommunications. 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On the other side is the Japanese automotive company alleging that Nissan is using the coincidence of the names to draw more visitors to his Web site: www.nissan.com, registered since 1994. CONTINUED HERE: http://www.icbtollfree.com/article.cfm?articleId=4566 P - DOW JONES LOSES UDRP "It may be that the Policy needs to be reviewed, particularly in relation to the requirement for showing use and registration in bad faith. It may seem inappropriate that a person with no legitimate right or interest in a name should be able to register it as a domain name adversely to one who has demonstrated such rights and interests, but the Panel is bound to apply the Policy as it is." SLIPPERY SLIPPERY SLOPE ... CONTINUED HERE: http://www.icbtollfree.com/article.cfm?articleId=4565 F - TM TLD COULD CURE DOMAIN LITIGATION G. Gervaise Davis, intellectual property attorney: "Domain names should not be confused with trademarks. Trademarks have national boundaries, while domain names must be used globally." CONTINUED HERE: http://www.icbtollfree.com/article.cfm?articleId=4560 ************************************************************************* **************************************************advertisements********* TelecomCareers.net - Cutting Edge Telecom Careers, #1 Telecom Job Site! http://TelecomCareers.net ************************************************************************* P.A.T. - a real Live person inside your voice mail? Yes. P.A.T.LiVE, a division of ATG Technologies, Inc., rents live secretarial services through a toll free number. P.A.T. (Personal Assistance Team) can enhance your productivity and image with rates as low as 3 cents per minute. http://www.patlive.com or 800.775.7790 ************************************************************************* Free Timely Time Management Tips to increase your personal productivity and give you more time and balance for your personal life. 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