Software Summary
A monthly briefing for AEA software executives
March 1994
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Now available from the American Electronics Association 

AEAFAX, AEA's fax on demand system, gets you the information you need, when
you need it. Simply note the document(s) you are interested in, and call
AEAFAX at 408-748-0855. Follow the directions to have information faxed to
you instantly. You can request up to five documents per call, and the
service is available 24 hours a day, 365 days a year.

Battle To Preserve Stock Options Continues 

AEA needs your help fighting the Financial Accounting Standards Board
(FASB) proposal that would force companies to value stock options on their
financial statements. Software companies in particular would be hit hard
by the proposal. To find out more, call AEAFAX at 408-748-0855 and request
document #52.

Reform Software Products Patenting

The Patent and Trademark Office (PTO) is accepting written comments on how
to improve PTO operations and patent policy. Issues under special
scrutiny: the use of the patent system to protect software-related
inventions; standards and practices used in examining patent applications
for software-related inventions; and the importance of protecting visual
aspects of software-related inventions.

To provide input, write to the U.S. Patent and Trademark Office, Attn: Jeff
Kushan, Box 4, Washington, D.C. 20031.

Please let AEA know about any suggestions you make to the PTO. AEA's
Software Public Policy Committee will soon formulate a position on
software product patent and copyright reform--having your opinion will
help us. Send comments to Ramona Gann, AEA, 1225 Eye Street, N.W., Suite
950, Washington, D.C. 20005 or call 202-682-4443.

Increased Market Potential for Voice Processing Equipment and Software

A viable market now exists in the Netherlands for suppliers and
manufacturers of voice processing equipment and software, according to
Mark Armitage at the U.S. Embassy at The Hague, in the Netherlands. The
main systems now in place come from North American suppliers, and industry
experts agree that the U.S. is at least five years ahead of Europe in
applying voice processing technologies. To learn more call Mark Armitage
at the U.S. Embassy, Tel. 31-70-310-94-15 or Fax 31-70-363-29-85.

Software Encryption and the "Clipper Chip"

The Clinton Administration announced in February that it will implement its
"Clipper Chip" initiative, a proposal revealed last year that would put
the same encryption chip in every telephone and computer made in the
United States. This would allow the Federal Government to access the code
numbers and effectively wiretap any person in the U.S. and abroad using
U.S. technology products. The February announcement also confirmed that
the Administration will continue to restrict exports of the most
sophisticated encryption devices. AEA opposes the "Clipper Chip"
initiative and supports legislation to liberalize export controls on
software with features that allow users to encrypt data.

Stanford Institute a Key Management Tool

The AEA/Stanford Executive Institute's two-week "mini-MBA" program is held
every August and fills up quickly. The registration deadline is March 31.
Call Kathy Esslinger at 408-987-4282 to enroll.

Do You Have the New AEA Publications Catalog? 

If not, you're missing out on publications specially selected to help
electronics and software companies be more competitive. Call the AEA
Customer Service Center at 800-284-4232 for a free copy.

Software Public Policy Committee 

AEA's Software Public Policy Committee held its first meeting in Santa
Clara, California, on February 25th. The committee decided it will work
this coming year to:

* Reform patent and copyright law as relates to software products;

* Expand the Foreign Sales Corporation provision--a tax issue that affects
many software companies that license and sell their products overseas;

* Define the National Information Infrastructure ("Information
Superhighway").

The committee is also drafting a white paper entitled "Priorities to
Enhance the Competitiveness of the U.S. Software Industry." It will be
presented to key members of Congress and the Administration in the coming
months. Among the issues discussed: the importance of the software
industry to the national economy; expansion of the Foreign Sales
Corporation benefit; the "Clipper Chip;" FASB's proposal on stock options;
export controls on encryption; frivolous lawsuits; government procurement
reform; and technology in our schools.

If you are interested in serving on the committee, please call Ramona Gann
in AEA's Washington, D.C. office at 202-682-4443.

Software Quality 

The U.S. Registrar Accreditation Board (RAB) is considering a proposal to
expand the U.S. accreditation requirements for ISO 9000 software auditors,
registrars, and course providers. The proposal may involve additional
software quality system requirements and/or additional requirements for
software quality system assessors. A sector program known as "TickIT,"
developed in the United Kingdom, serves as the model for the proposal.

The AEA Quality Committee has expressed its opposition to the proposal on
the grounds that it will create costly and unnecessary sector-specific
standards and registration schemes. To learn more please call Craig Walter
in AEA's Santa Clara office at 408-987-4240.

Manage Innovation and Change More Effectively 

Excellent change management skills are a priority for senior executives.
AEA and Stanford University cosponsor a valuable 3-day learning forum to
help you sharpen yours. Dates for 1994's Managing Innovation and Change
are June 14-17. Registration is limited to 45 executives. Call Kathy
Esslinger at 408-987-4282 for enrollment information.

Legally Protect Your Software and Your Software Business 

An exceptionally valuable and timely book on software and the law is now
available at a discount to AEA members. The Software Developer's and
Marketer's Legal Companion details information you need to compete in the
software industry--information that could put you at risk if you don't
have it. Order this well-organized and readable reference through AEA's
Customer Service Center, 800-284-4232. AEA member price: $27.95; nonmember
price: $34.95.
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American Electronic Association
1225 Eye Street N.W., #950
Washington, D.C. 2005
202-682-9110

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