BULLETIN BOARD OPERATOR IS SENTENCED

Federal Authorities Follow Up On SPA Investigation

March 9, 1995 (Washington, DC) - The United States District Court for
Massachusetts today sentenced computer bulletin board system operator
Richard D, Kenadek to 24 months probation with 6 months home confinement.
In addition, for the first 3 months Mr. Kenadek will be monitored by use
of an electronic bracelet and is required to forfeit all computer
equipment related to the operation of the Davy Jones Bulletin Board.

The Software Publishers Association's (SPA) four month investigation of Mr.
Kenadek's bulletin board precipitated an FBI investigation which concluded
with the sentence announced today. Kenadek was the operator of the "Davy
Jones Locker" computer bulletin board, located at Kenadek's residence in
Milbury, Massachusetts.

Kenadek was indicted in August, 1994, and in December plead guilty to
criminal copyright infringement for using the Davy Jones Locker Bulletin
Board for the unauthorized distribution of copyrighted software for
financial gain. The FBI obtained a search warrant and raided the site of
Kenadek's bulletin board operation. The indictment and sentence followed
the FBI raid.

"Today's sentence is the first time the criminal statute under the
copyright law has been used to prosecute a bulletin board operator. This
is a crucial turning point on the road to eliminating piracy among
bulletin board operators," said Sandra A. Sellers, the SPA Director of
Litigation. "The prosecution of Kenadek sends a message to bulletin board
operators that both civil and criminal remedies will be vigorously pursued
for the unauthorized distribution of copyrighted software. This helps to
ensure that the nation's bulletin board operators obey the copyright
laws." Sellers added, "lt also demonstrates that the U.S. government
recognizes the seriousness of software copyright violations. We applaud
the federal authorities' swift and sure action in this case and look
forward to a continuing relationship with them."

The prosecution followed an FBI investigation of the Davy Jones Locker
bulletin board that was conducted with the assistance of information
provided by the SPA. For four months prior to the raid, the SPA had
monitored the board and downloaded copyrighted business and entertainment
programs that were posted on the board without the permission of the
publishers. At the time of the FBI raid, more than 200 commercial
copyrighted programs were available to subscribers for downloading from a
special section of the Davy Jones Locker bulletin board reserved for
copyrighted files. Kenadek charged subscribers fees for access to his
bulletin board, he charged $49 for 3 months or $99 for a full year.
According to the SPA's investigation, the Davy Jones Locker bulletin board
not only made copyrighted software available for downloading, but also
encouraged users of the service to upload or contribute additional
copyrighted software for illegal distribution.

Based on the results of its own investigation, the SPA filed a civil
lawsuit on behalf of its members against Mr. Kenadek on the same day the
FBI raid was conducted. The SPA's civil case has been settled in
conjunction with Mr. Kenadek's guilty plea. The terms of that settlement
include an injunction prohibiting Mr. Kenadek from operating or assisting
in any computer bulletin board for one (1) year.

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.

SPA Executive Director Ken Wasch said, "Most of the estimated 50,000
bulletin board systems in North America are scrupulously honest and
periodically purge copyrighted software from their systems. However,
people who operate pirate bulletin boards can expect to be targets of
civil and criminal prosecution. Investigations on other similar boards are
continuing and action is expected in the near future."

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. Its 1,100 members represent the leading
publishers in the business, consumer, and education markets. The SPA has
offices in Washington, D.C., and Paris, France. SPA press releases are
available through its Internet Web page at http://www.spa.org, and via
CompuServe (GO: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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