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    {
     > Does anyone have any news, information or an fidonet, internet or
     > snailmail address of Unisys or Compuserve. I want to verify the
     > rumours about the GIF-royalties before I release GFXFX2.

    I captured this from the Dr DeBug conference today:

    It's an imprecise reference to Unisys's patent on LZW compression, which
    is used in the GIF image format:

    UNISYS                                          January 6, 1995

    Unisys Clarifies Policy Regarding Patent Use in On-Line Service Offerings

    The concerns, inquiries and some apparent confusion that have resulted from
    the December CompuServe advisory clearly indicate that we need to clarify
    our policy concerning the use of the Unisys Lev Zempel Welch (LZW) patent by
    software developers for the major on-line services.

    We want to reiterate earlier communications that the issue of patent licenses
    is not focused on the end users of on-line networks, including the Internet.
    We encourage end users to continue to take full advantage of the outstanding
    benefits of a rapidly growing on-line community.

    Unisys was awarded the patent in 1985.  We became aware of the increasing
    interest in our LZW patent beginning in 1990 when many companies approached
    us to license the patent for their hardware and software products, The
    growth in the use of compression technology was mushrooming in order to meet
    the demands for transmitting increased amounts of data, To date, more than 100
    companies, including hardware, software and online information services, have
    licensed the Unisys LZW technology.

    Two years ago, Unisys learned that the LZW method was incorporated in the
    GIF specification and immediately began negotiations with CompuServe in
    January of 1993.  We reached agreement with CompuServe on licensing the
    technology in June 1994, which calls for CompuServe to pay Unisys a royalty
    of 1% of the average selling price it charges for its software.  This
    represents approximately 11 cents for each copy sold and connected to its
    information service.

    Under the agreement, CompuServe, at its discretion could relicense the LZW
    technology to commercial developers using the GIF specification in software
    that connected directly to the CompuServe information service.

    With the agreement completed on June 21, 1994, CompuServe was given six
    months to implement the terms of its license. CompuServe later asked for a
    one-month extension, which we granted.

    Unisys did not require CompuServe to pass on any fee to its sublicensees or
    end users.  Such a decision, and the content and timing of CompuServe's
    advisory, was at their discretion.

    Consistent with the entire information industry's desire to protect
    intellectual property, Unisys will expect all of the major commercial on-line
    information services companies employing the LZW patent to license the
    technology from Unisys at a reasonable rate.  The on-line service companies
    are not required to sublicense the technology to developers producing software
    for the commercial on-line services.  It will be, as it is today, at the
    on-line service's discretion as to whether charges a license fee to developers
    or chooses an alternative method to account for its license fee payable to
    Unisys.

    We recognize and are concerned - in large part to the recent and very active
    use of the online network - that developers did not understand that the
    patented technology was resident in GIF.

    Taking that into account, Unisys does not intend to pursue previous
    inadvertent infringement by versions of GIF-based software products
    marketed prior to 1995.

    Concerning all future software product development and enhancement of
    existing products for accessing on-line services, Unisys expects developers
    of commercial, for-profit software to secure a license from Unisys, or
    through the licensed on-line service, for the use of the patented technology.
    The very reasonable terms should prove no financial barrier to the
    introduction of product into the on-line network.

    Unisys does not require licensing, or fees to be paid, for non-commercial,
    non-profit GIF-based applications, including those for use on the on-line
    services.

    Concerning developers of so for the Internet network, the same principle
    applies.  Unisys will not pursue previous inadvertent infringement by
    developers producing versions of software products for the Internet prior
    to 1995.  The company does not require licensing, or fees to be paid for
    non-commercial, non-profit offerings on the Internet, including "Freeware".

    Commercial developers of GIF-based software for the Internet are expected
    to secure a licensing agreement with Unisys for software products introduced
    beginning in 1995, or enhancements of products that were introduced prior
    to 1995. Again, terms should not preclude the entry by these firms into
    the marketplace.

    For organizations introducing World Wide Web servers and "Home Page"
    offerings, most will not be required to secure a license from Unisys. Most
    organizations acquire software from other developers to create their
    offerings on their servers.  Therefore, only the software firms who sell
    the enabling software for profit would be expected to secure a licensing
    agreement from Unisys.

    Unisys understands that this issue has caused concern.  We want to reassure
    all users and developers that we are strong proponents of the on-line
    industry.

    We're proud that this important Unisys technology has played a role in the
    introduction of innovative products and services, many of which are
    fueling the explosive growth of the information superhighway.

    As members of the information community we want to strike the appropriate
    balance between information access and the rights of all information
    companies, including the developers of software, to protect their
    intellectual property rights.

    Patent information:  Contact Welch Patent Licensing Department
                                 Unisys; Mail Stop CISWI9;
                                 P.O. Box 500, Blue Bell, PA 19424.

    Or Via Internet, send E-mail to LZW_INFO@UNISYS.COM, or use a form available
    on the Home Page of the Unisys Web Server (http:\\www.unisys.com) to request
    follow-up information.

    Media contacts: Unisys Public Relations -- Bob O'Leary   (215) 986-6413
                                           or Oliver Picher  (215) 986-5367

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