Bulletin Board Operator is Indicted

First Ever Indictment on Copyright Infringement Charges

August 31, 1994 - The United States Attorney for Massachusetts today
indicted Richard D. Kenadek, the operator of the "Davy Jones Locker," a
computer bulletin board located in Millbury, Massachusetts, which
allegedly had been illegally distributing a broad variety of copyrighted
software programs. The indictment followed a raid of the bulletin board
conducted by the Federal Bureau of Investigation (FBI).

"To our knowledge, Richard D. Kenadek is the first bulletin board operator
to be indicted for federal copyright infringement," said Sandra A.
Sellers, SPA Director of Litigation. This sends the message to bulletin
board operators that both civil and criminal remedies will be vigorously
pursued for the unauthorized distribution of copyrighted software. This is
a large step toward ensuring that the nation's bulletin boards obey the
copyright laws. It also demonstrates that the government recognizes the
seriousness of this type of software copyright violation. We applaud the
federal authorities' action in this case."

Mr. Kenadek could face up to a year in prison for the copyright violations.
"Actually, Mr. Kenadek is lucky," said Ms. Sellers. "If the Davy Jones
Locker bulletin board had been raided just a week later, after passage of
the legislation that made copyright infringement a felony, he may have
faced up to five years in prison."

The indictment followed an FBI investigation of the Davy Jones Locker
bulletin board, which was conducted with the assistance of information
provided by the SPA. For four months prior to the raid, the SPA had
downloaded copyrighted business and entertainment programs from the board,
which were identical to the original programs. As a result of its own
investigation, the SPA filed a civil lawsuit on behalf of its members
against Mr. Kenadek on the same day the raid was conducted. Though the
SPA's civil suit has been dormant pending the indictment of Mr. Kenadek,
the SPA now plans to pursue the suit vigorously and seek the full extent
of relief available under the copyright laws. If the SPA is victorious,
Mr. Kenadek can be ordered to pay up to $100,000 per copyrighted title
infringed. More than 200 copyrighted programs had been available to
subscribers for downloading on a special section of the Davy Jones Locker
board at the time of the FBI's raid. According to the SPA's investigation,
the Davy Jones Locker bulletin board not only made copyrighted software
available for downloading, but allegedly encouraged users of the service
to upload or contribute additional copyrighted software for illegal
distribution.

In general, computer bulletin boards allow personal computer users to
access a host computer by a modem-equipped telephone to exchange
information, which can include messages, files and computer programs. The
system operator (or "sysop") is responsible for materials posted to the
bulletin board.

Ken Wasch, SPA Executive Director said "Most bulletin board systems in
North America are scrupulously honest and periodically purge copyrighted
software from the systems. However, people who operate pirate bulletin
boards can expect to be targets of civil and criminal prosecution."

The SPA's anti-piracy hotline, 1-800-388-7478 accepts calls reporting
software copyright violations, including information on pirate bulletin
boards. The hotline receives more than 100 calls per week about all forms
of piracy.

The Software Publishers Association is the principal trade association of
the PC software industry. It's 1,100 hundred members represent the leading
publishers in the business, consumer and education software markets. The
SPA has office in Washington DC and Paris, France. SPA press releases are
available through CompuServe. (GQ: SPAForum).

Software Publishers Association
1730 M St, Northwest, Suite 700, Washington, D.C. 20036
202-452-1600,  Fax: 202-223-8756

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