// COMPLETE THREAD

RC4 Legal Issues

9 expanded posts ยท every known parent and child

NODE 58797261RC4 Legal Issues
So what does the publication of the reverse engineering of RC4
mean legally? AT&T claimed trade sevret and copyright protection
over code that was pretty well known in the BSDI case...

Can RC4 still be construed as a trade secret or proprirtary to
RSADS and Bizdos or are, as I understand from previous messages,
we free to use RC4 now (ignoring the submarine patent issue)?
NODE 625aa9e5Re: RC4 Legal Issues
On Wed, 14 Sep 1994, Patrick G. Bridges wrote:

> Can RC4 still be construed as a trade secret or proprirtary to
> RSADS and Bizdos or are, as I understand from previous messages,
> we free to use RC4 now (ignoring the submarine patent issue)?

I just checked the Cryptography Today FAQ from rsa.com and found 
precious little clues in the section about RC2 and RC4, except for the 
following:

  "RC2 and RC4 are proprietary algorithms of RSA Data Security, Inc.; 
   details have not been published" (sic)

They claim that RC4 is 10 or more times as fast as DES.  Has anyone done 
any speed trials against libdes yet?


Regards,

- Andy

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NODE 50d8b325Re: RC4 Legal Issues
Andrew Brown says:
> They claim that RC4 is 10 or more times as fast as DES.  Has anyone done 
> any speed trials against libdes yet?

John Ioannidis, playing with the posted code, claims to have gotten
24mbps out of it, on a machine where a carefully tuned version of Phil
Karn's DES code gets 2mbps.

Perry
NODE 0627b259RC4 Legal Issues
Can RC4 still be construed as a trade secret or proprirtary to
   RSADS and Bizdos or are, as I understand from previous messages,
   we free to use RC4 now (ignoring the submarine patent issue)?

A trade secret is just that, a secret.  For parties unrelated to the
holder of the secret, once it's no longer a secret, it's not a secret,
and the former holder of the secret has no protection at all.  In
other words, if you're not, say, a BSAFE licensee, you are free to use
the alleged RC4 algorithm.

Let me repeat.  If you've never made an agreement with RSADSI about
not distributing their trade secrets, RSADSI has _no_ claim against
you about the trade secret.  (I don't know if the name "RC4" is
trademarked.)

Note the use of the word 'unrelated' in the sentence above.  The
situation is hazier there.  Both licensees and agents (including
employees) of the holder of the secret are liable for damages if they
breach the trust of the secret holder by revealing the secret.  This
liability, however, does _not_ make the secret any less revealed.  The
former holder can sue for damages, assuming there's someone to sue and
the damages can be ascertained.

If you're the user of a product which includes RC4, like Lotus Notes,
for example, the agreement between Lotus and RSADSI about protection
of trade secrets doesn't apply to you, assuming you don't work for
Lotus or RSADSI.  You weren't a party to the agreement, and its terms
don't directly affect thrid parties.  You made a (shrink-wrap)
agreement with Lotus, not RSADSI.

Eric
NODE be19cde8Re: RC4 Legal Issues
>A trade secret is just that, a secret.  For parties unrelated to the
>holder of the secret, once it's no longer a secret, it's not a secret,
>and the former holder of the secret has no protection at all.  In
>other words, if you're not, say, a BSAFE licensee, you are free to use
>the alleged RC4 algorithm.

This was my understanding *before* the recent jury decision in the
Microsoft vs Stac Electronics countersuit. When Stac sued Microsoft
for infringing their patents on disk compression, Microsoft
countersued Stac for trade secret infringement for having
reverse-engineered some hidden system calls in MS-DOS. Not only did
the jury uphold Stac's bogus software patent, but they also found in
favor of Microsoft on their ridiculous trade secret accusation!

Needless to say, this creates a very troubling precedent. Now you can
now apparently infringe a trade secret merely by examining fully
public information (e.g., commercially available object code.)

Phil
NODE fa24980eRe: RC4 Legal Issues
Phil Karn says:
> >A trade secret is just that, a secret.  For parties unrelated to the
> >holder of the secret, once it's no longer a secret, it's not a secret,
> >and the former holder of the secret has no protection at all.  In
> >other words, if you're not, say, a BSAFE licensee, you are free to use
> >the alleged RC4 algorithm.
> 
> This was my understanding *before* the recent jury decision in the
> Microsoft vs Stac Electronics countersuit.
[...]
> Microsoft countersued Stac for trade secret infringement for having
> reverse-engineered some hidden system calls in MS-DOS. [...]  the
> jury found in favor of Microsoft on their ridiculous trade secret
> accusation!

Ah, but that does make some sense. You see, Stac bought MS-DOS from
Microsoft, and had to adhere to Microsoft's shrink wrap agreement.
They broke the agreement they made with Microsoft when they bought the
software.

The person that reverse engineered RC4 obviously broke the rules and
can be sued by RSA -- if anyone can ever figure out who he is. On the
other hand, *I* have never signed an agreement with RSA... and I doubt
that you have...

Perry
NODE 20942096RC4 Legal Issues
Ah, but that does make some sense. You see, Stac bought MS-DOS from
   Microsoft, and had to adhere to Microsoft's shrink wrap agreement.

Whether or not a shrink wrap agreement is valid is a further issue
here as well.  Taking something apart that lots of people have is, or
at least should be, a fair use.

Eric
NODE a4052ddcRe: RC4 Legal Issues
> "Patrick G. Bridges" <bridges@cs.arizona.edu> writes:
> So what does the publication of the reverse engineering of RC4
> mean legally?

Does the answer to this question depend on whether it really was reverse
engineered, or is a direct lift from the original source code?

	Jim Gillogly
	Sterday, 24 Halimath S.R. 1994, 06:43
NODE 349e4902RC4 Legal Issues
Does the answer to this question depend on whether it really was reverse
   engineered, or is a direct lift from the original source code?

It does not matter to disinterested parties, like the average
cypherpunk.  

If it was reverse engineered, there may be a claim by the seller of
the software against the licensee for breaching a "no reverse
engineering" clause.  In this case RSADSI is not a party to the action
because the reversing engineer did not make an agreement with RSADSI
concerning trade secrets.  Any disinterested party is also not subject
to this action, because they made no agreement with anybody involved.
It's possible that RSADSI and, say, Lotus have an indemnification
agreement in the case of reverse engineering, but that only affects
the distribution of resources between those two companies.

If it was lifted from source code, then RSADSI has a claim of
malfeasance against theft of trade secrets.  This doesn't reverse the
fact that it's no longer a secret, but rather allows RSADSI to sue for
the damages caused by the revelation of the secret.  RSADSI can only
sue the person who revealed the secret, not just anybody who posesses
it.  It's also possible that there might be a claim against the party
to whom the secret was directly divulged, were there some conspiracy
to steal trade secrets.  That situation does not seem to apply here.

In all of the above, be mindful that anybody can file a lawsuit and
claim anything at all, and if it sounds official the gullible might
believe that even the most farcical claims have merit.

Eric