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Subject: Edupage, 25 January 1996
*****************************************************************
Edupage, 25 January 1996. Edupage, a summary of news items on information
technology, is provided three times each week as a service by Educom,
a Washington, D.C.-based consortium of leading colleges and universities
seeking to transform education through the use of information technology.
*****************************************************************
TOP STORIES
Clinton Proposes Computers In All Classrooms
IBM Decree-Lifting Is An Incomplete Success
Software Makers Should Look To Patent Law For Protection
New Wave Of Internet IPOs On The Horizon
Financier Promises $5 Million For Internet Access
GEnie Sold To Yovelle Renaissance
Suite Deals For Lotus
ALSO
Intel Lines Up Support For New Data Card
Cisco Will Acquire TGV Software
Cruising The Net In The Friendly Skies
Insecurity Fears
TV Decoder Agreement In Germany
Privacy Of Personal Data
Telecom "Giveaway" Controversy May Be Deferred
CLINTON PROPOSES COMPUTERS IN ALL CLASSROOMS
In his State of the Union speech this week President Clinton said: "Every
classroom in America must be connected to the information superhighway, with
computers, good software and well-trained teachers. We are working with the
telecommunications industry, educators and parents to connect 20% of the
classrooms in California by this spring, and every classroom and library in
America by the year 2000." The Department of Education's preliminary cost
estimate for the proposal is about $10 billion; a McKinsey & Co. consulting
study completed last summer for the National Information Infrastructure
Advisory Council estimated the cost for the kind of system proposed by the
President (i.e., a computer for every four or five students) to be about $47
billion. (New York Times 25 Jan 96 A9)
IBM DECREE-LIFTING IS AN INCOMPLETE SUCCESS
A federal judge has terminated much of the 1956 consent decree against IBM,
intended at the time to level the playing field between Big Blue and its
competitors, but two critical parts of the decree remain in force. Those
cover IBM's mainframe computer and AS/400 midrange computer lines, a caveat
that left IBM officials less than ecstatic over the ruling: "Even as
amended by the judge's order, the decree represents an unwarranted
limitation on legitimate business conducted by IBM," says a company
statement. On the positive side, the ruling lifts restrictions on IBM's
services operations, currently the fastest growing portion of its business.
(Wall Street Journal 24 Jan 96 B7)
SOFTWARE MAKERS SHOULD LOOK TO PATENT LAW FOR PROTECTION
Patent attorney Peter Trzyna says copyright law increasingly is unsuitable
for protecting computer software: "The law is changing all the time,
especially computer law. It's moving against copyright protection for
software. The doctrine of look and feel (the idea that the basic appearance
of a program can be protected) has been pared way back. It used to be
viewed that computer programs as a whole could be protected by a copyright.
But not anymore." He recommends using the patent process for protection:
"Essentially every judge on the court of appeals has said software is a
patentable subject matter. It's got to be new and not obvious, and those
are the same principles that have guided patent law for years in other
fields." (Investor's Business Daily 24 Jan 96 A6)
NEW WAVE OF INTERNET IPOs ON THE HORIZON
Still flush from the rush experienced during Netscape's initial public
offering, Wall Street is bracing for another onslaught of fledgling Net
companies. Waiting in the wings are IDT Corp., an Internet services
provider and discount telephone company; CyberCash Inc., which provides
security for online transactions; Raptor Systems, which makes
anti-hacker/cracker software; VocalTec, an Israeli company involved in
Internet telephony; and many others. Still, the drop in Net stocks has
traders a little jittery: "If you get too many of these Internet IPOs, you
could saturate the industry," says one mutual fund portfolio manager.
(Business Week 29 Jan 96 p60)
FINANCIER PROMISES $5 MILLION FOR INTERNET ACCESS
International financier George Soros is planning a new $5-million foundation
dedicated to the development of Internet access for hospitals, museums and
libraries in the former Soviet Union and Eastern Bloc countries, as well as
South Africa and Haiti. A spokesman for Soros's Open Society Institute says
expanded Internet access can play an important role in nurturing democracy
in these countries. (Chronicle of Higher Education 26 Jan 96 A17)
GENIE SOLD TO YOVELLE RENAISSANCE
General Electric's online GEnie service will be sold to privately held
Yovelle Renaissance, which plans to transform GEnie into a World Wide Web
service. Yovelle, which was formed for the acquisition, is linked to IDT
Corp., a New Jersey-based Internet access provider. (Wall Street Journal 24
Jan 96 B7)
SUITE DEALS FOR LOTUS
Lotus Development Corp. has signed deals with AST Research, Epson America
Inc. and IBM to bundle Lotus's SmartSuite software with selected PCs. Lotus
says the new arrangements will make its software available to 5.5 million PC
users this year. (Investor's Business Daily 25 Jan 96 A8)
=========================================================
INTEL LINES UP SUPPORT FOR NEW DATA CARD
Intel has attracted backing from Microsoft, Hewlett-Packard, Compaq
Computer, Philips NV, Fujitsu, Sharp and Advanced Micro Devices for its
Miniature Card, a new generation of tiny storage devices expected to be used
in everything from cellular phones to digital cameras. Intel's design is
rivaled by Compact Flash, a competing standard backed by SanDisk, along with
supporters such as Motorola, Apple Computer, Eastman Kodak and NEC Corp.
SanDisk already is shipping some of its cards, and Intel expects to begin
shipping in the spring. (Wall Street Journal 24 Jan 96 B7)
CISCO WILL ACQUIRE TGV SOFTWARE
In its ever-expanding strategy of linking Internet capabilities to its
networking products, Cisco has agreed to buy TGV Software Inc. for about
$100 million in stock. In recent months, Cisco has acquired Network
Translation Inc. and Terayon Corp., and has made investments in several
small computer network equipment and software companies. (Investor's
Business Daily 25 Jan 96 A9)
CRUISING THE NET IN THE FRIENDLY SKIES
The Network Connection of Atlanta is developing InterView, an extension of
the AirView in-flight entertainment system. InterView will add Net surfing
to AirView's menu of movie-viewing, computer games, music videos, and faxing
functions from monitors installed in passengers' seatbacks. Both systems
are slated for delivery next June. (Information Week 8 Jan 96 p10)
INSECURITY FEARS
A North American study on Internet security by Ernst & Young says that
companies fear doing business via the Internet. Companies with a direct
Internet connection are concerned that outsiders can gain access to their
systems and data bases, and companies that transmit sensitive financial
information worry about the security of these transactions. (Toronto Globe
& Mail 25 Jan 96 B5)
TV DECODER AGREEMENT IN GERMANY
Two major rival German media organizations, Bertelsmann and Kirch, have
agreed to collaborate on development of a pay-per-view standard decoding box
for digital TV. By working together rather than pursuing competing
standards, the groups will realize considerable savings on a system that
will cost several billion Deutschmarks in startup costs. (Financial Times
22 Jan 96 p15)
PRIVACY OF PERSONAL DATA
Canada's largest retail brokerage, Midland Walwyn, is urging the government
to takes steps to ensure that the country's major banks do not "abuse" the
massive amounts of personal data on customers contained in their computers.
The brokerage is worried about the enormous potential for invasions of
privacy and co