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RELEASE.DOC
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1988-08-02
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FOR RELEASE ON AUGUST 1, 1988
From: System Enhancement Associates, Inc. (SEA)
and
PKWARE, Inc. and Phillip W. Katz (PK)
August 1, 1988 - Milwaukee, WI
In the first known "Shareware" litigation, pending in
the local United States District Court, the parties System En-
hancement Associates, Inc. (Plaintiff - SEA) and PKWARE, Inc.
/ Phillip W. Katz (Defendants - PK), after reaching agreement,
consented to the entry of the attached Judgment for Plaintiff
on Consent. That Judgment was entered by Judge Myron L.
Gordon, effective on August 1, 1988.
Part of the agreement reached by the parties included
a Confidential Cross-License Agreement under which SEA licensed
PK for all the ARC compatible programs published by PK during
the period beginning with the first release of PKXARC in late
1985 through July 31, 1988 in return for the payment of an
agreed upon sum which was not disclosed. Additionally, PK was
licensed, for an agreed upon royalty payment, to distribute its
existing versions of PK's ARC compatible programs until January
31, 1989, after which PK is not licensed and agreed not to pub-
lish or distribute any ARC compatible programs or utilities that
process ARC compatible files. In exchange, PK licensed SEA to
use its source code for PK's ARC compatible programs.
PK agreed to cease any use of SEA's trademark "ARC"
and to change the names or marks used with PK's programs to
non-confusing designations.
The Judgment provided for the standard copyright,
trademark and unfair competition injunctive relief for SEA a-
gainst PK, as well as damages and litigation expenses to be paid
by PK to SEA.
Both parties agreed to refrain from any comment
concerning the settlement of the disputes, other than the text
of this press release. Also, the parties instructed all of their
representatives to refrain from any such activity.
Any other details of the Cross-License Agreement
were agreed to be maintained in confidence and under seal of
the Court.
In reaching the agreement to dispose of the pending
litigation and to settle the disputes that are covered thereby,
PK did not admit any fault or wrongdoing.