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Article #595 (730 is last):
From: aa789@cleveland.Freenet.Edu (Bruce D. Nelson)
Newsgroups: freenet.sci.comp.atari.mags
Subject: ST Report: 2-Aug-96 #1231
Reply-To: aa789@cleveland.Freenet.Edu (Bruce D. Nelson)
Posted-By: xx004 (aa789 - Bruce D. Nelson)
Date: Fri Aug  9 17:00:23 1996

                            Silicon Times Report
                  The Original Independent OnLine Magazine"
                                (Since 1987)
  August 02, 1996                                                   No.1231

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 08/02/96 STR 1231        The Original Independent OnLine Magazine!
 - CPU Industry Report - Adobe NewsWire - Corel Updates
 - NEC Disputes Cray   - CDA SUNK Again - NEW Stuffit Ships
 - Educational SWare   - CIS Shakeup    - Certified WebSites
 - G7 & The NET        - People Talking - Atari Corner
                Netscape Challenges Microsoft
                       ATARI CORP. RIP
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                                                  The Publisher, Staff &

Florida Lotto - LottoMan v1.35
Results: 7/21/96: 3 of 6 numbers, no matches

>From the Editor's Desk...

     On the political scene. Dole is busy "wooing & romancing" Hollywood but
a scant six months ago he was very busy crucifying Tinsel Town. over the
types of movies they were producing.  Its amazing what a little campaign
money can accomplish.  Its sad that they still lock up legit prostitutes.
Perhaps the Prostitute Laws should be expanded to campaigning politicians.
Dole has yet to name a running mate.  I hope he does name Connie Mack R-FL,
that's a certain boat anchor for Dole.

     On the computing front there is good news for the serious minded
computerists.  Windows NT 4.0 and NT Server 4.0 went retail this past week.
This is the muscle twins of the computing world.  NT is, by far, the most
secure and sure footed of MS offerings for the business community.  Just
imagine what its going to be like when the great meeting takes place in

     We're just getting bits and pieces of a big shakeup at CompuServe. NISA
- HMI it's all gone.  Stay tuned we'll have all the particulars next week.
Additionally, there's a bit of internal cattiness and silly censorship having
between two forums.  Its seems that some folks get a title added to their
name and it goes straight to their heads.  Must be an "Old World Trait" or,
so it would seem.  Unbelievably, the "informed" new leaders at CIS feel WOW
is a success and the familiar CIS is "on the wane".  Additionally, the "new
deal" for CIS has the idea that instead of an account exec.. an "editor"
overseeing the "content" of each forum.  For the record this reporter feels
all WOW can offer at this time is "eye candy and a "Peter Pan & Mary Poppins
like atmosphere".  This is a success???  Its a joke and a bad one at that.
If they stay on their present course.. CompuServe as we all know it will be
no more by year's end.  Obviously, those in charge there are more interested
in catering to the teen and young adult segment.  Think its a bit premature??
Ask around about how many substantial CIS contract holders are already
shopping around.  Stay tuned.  This one is going to get interesting.

     Also for next week. expect a report on building a powerhouse computer on
a budget.  From the first turn of the screwdriver to the flipping of the
switch, we'll take you on a step by step journey.  Hopefully, we'll be able
to steer a few good folks away from the gouge artists out there by giving
some good information and sources.


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                    Ralph F. Mariano, Publisher - Editor
                  Dana P. Jacobson, Editor, Current Affairs

Section Editors
PC Section                         Mac Section                   Atari
R.F. Mariano                       J. Deegan                D. P.Jacobson

Portable Computers & Entertainment                     Kid's Computing Corner
     Marty Mankins                                          Frank Sereno

STReport Staff Editors
Michael Arthur                     John Deegan              Brad Martin
John Szczepanik                    Paul Guillot             Joseph Mirando
Doyle Helms                        John Duckworth           Jeff Coe
Steve Keipe                        Victor Mariano           Melanie Bell
Jay Levy                           Jeff Kovach              Marty Mankins
Carl Prehn                         Paul Charchian           Vincent P. O'Hara
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Dominick J. Fontana                Norman Boucher           Daniel Stidham
David H. Mann                      Angelo Marasco           Donna Lines
Ed Westhusing                      Glenwood Drake           Vernon W.Smith
Bruno Puglia                       Paul Haris               Kevin Miller
Craig Harris                       Allen Chang              Tim Holt
Ron Satchwill                      Leonard Worzala          Tom Sherwin

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                           STReport Headline News

                   Weekly Happenings in the Computer World

                        Compiled by: Dana P. Jacobson

                         Lawmakers Weigh Encryption

A U.S. Senate panel considering legislation to ease U.S. restrictions on the
export of encryption software will hear testimony from FBI Director Louis
Freeh.  As noted earlier, Sen. Conrad Burns, R-Montana, has introduced
legislation that would ease limits on export of data-scrambling technology.
Earlier, a Commerce subcommittee heard extensive testimony from the computer
industry, which argues that current U.S. policy threatens its status a global
technology leader.

Now the panel will hear from Freeh as well as William Reinsch, undersecretary
of the Commerce Department's Bureau of Export Administration, and William
Crowell, deputy director of the National Security Agency.  Anticipating
tomorrow's testimony, the Dow Jones news service quotes a statement from
Burns as saying, "This is the first time the administration has been asked to
defend its outdated encryption policies in front of the Senate. This hearing
could play a major role in determining the fate of the Pro-Code bill."

DJ notes Pro-Code refers to the title of the legislation, the "Promotion of
Commerce Online in the Digital Era Act of 1996."  Says the wire service,
"Supporters of the bill include GOP presidential hopeful Robert Dole; Senate
Commerce Committee Chairman Larry Pressler, R-South Dakota; Sen. Patrick
Leahy, D-Vermont; and Sen. John McCain, R-Arizona."

The senators also will hear testimony from James Barksdale, president/CEO of
Netscape Communications Corp. and a vocal critic of current U.S. encryption
policy, as well as Grover Norquist, president of Americans for Tax Reform,
and Roel Pieper, president/CEO of Tandem Computers Inc.

                         Freeh Fears Free Encryption

FBI Director Louis Freeh has told a congressional committee he thinks
eliminating U.S. export restrictions on computer encryption would gravely
harm law enforcement efforts to catch criminals and terrorists.  Offering the
Clinton administration's case against a bipartisan proposal to relax existing
export rules at a Senate Commerce Committee hearingyesterday, Freeh said,
"The bills that are before the committee are remarkably devoid of even a
reference to public safety or to law enforcement."

As reported, use of encryption within the U.S. is unregulated, but a Cold
War-era munitions statute specifies that only weak coding programs can be
exported. Most of those export restrictions would be abolished under Senate
bill 1726, the Promotion of Commerce Online in the Digital Era Act of 1996.
Such encryption uses mathematical formulas to scramble information and render
it unreadable without a password or software "key," and Freeh and the
administration support an alternative approach backed by the administration,
and barred by bill 1726, known as key escrow.

Associated Press writer Curt Anderson says Freeh told the senators a man
charged with plotting to blow up 11 U.S. airliners used computer security
codes so powerful the FBI hasn't been able to  crack them. The sophisticated
encryption codes were used by Ramzi Yousef, an Islamic militant who is being
tried in New York and also faces charges as the alleged mastermind of the
World Trade Center bombing, Freeh said.

Added Freeh, "Encryption products used unchecked by criminals and terrorists
for their illegal activities pose an extremely serious and, I believe,
unacceptable threat."  Meanwhile, Aaron Pressman of the Reuter News Service
quotes Freeh as adding, "The danger results in criminals and terrorists being
able to encrypt telephone calls that cannot be deciphered and to encrypt
computer files in ways that are unbreakable," Freeh said. "But the technology
that makes encryption possible has also produced an answer to the problem in
providing a balance. It is called key escrow, key recovery or trusted third
party system."

At the same hearing, representatives of U.S. computer companies said they are
losing sales to foreign companies willing to sell robust encryption programs
without key escrow. Netscape  Communications Corp. president James Barksdale
said his company will lose $40 million in sales this year o competitors in
Europe and around the globe.  Barksdale testified, "Just as U.S. consumers
bought fuel-efficient cars from Japan during the energy crisis of the 1970s,
consumers are turning to security-proficient software products from non-U.S.
firms during the Internet explosion of the 1990s."

Barksdale and others argued that criminals would evade any U.S. scheme for
key escrow encryption by using foreign or homemade coding products.  Reuters
notes Japan, where wiretaps are prohibited, has shown little interest in key
escrow, former U.S. ambassador to Venezuela Michael Skol testified. Japan's
Nippon Telegraph and Telephone Corp. is selling a complex encryption computer
chip for about $100.

On this point, Freeh conceded, "If a few countries, particularly key
countries, don't adopt this, that's a great vulnerability in the system."
However, so far, he said, encryption is not widely used in the United States
or abroad. Only about 5 percent of specimens submitted to the FBI computer
analysis lab show incidences of encryption which are troubling, Freeh said.
"We do not yet have in the United States an encryption crisis," Freeh said,
but broad export of encryption by U.S. companies would make unbreakable coded
messages "routine" in the future.

"What I'm very fearful of, and what I think everybody in this room needs to
be fearful of," said Freeh, "is a situation where as a matter of policy the
United States has promoted and exported robust, unaccessible encryption ...
that builds up infrastructures where this capability is so routine."

                        N.Y. Judges Reject Net Curbs

Saying the measure bans constitutionally protected speech between adults, New
York federal judges have blocked enforcement of a new law aimed at regulating
indecent material on the Internet.  Judges from the Southern District of New
York granted an injunction sought by the editor of The American Reporter, an
online newspaper, who argued that the law was too broad.

This ruling comes on the heels of last month's judge by a Philadelphia panel
that also found a key part of the law to be unconstitutional. Law
correspondent Gail Appleson of United Press International notes the previous
ruling went farther than the one issued in New York by finding the law too
vague as well as too broad.  At issue here is the controversial Computer
Decency Act of 1996, passed overwhelmingly by Congress as part of the broader
Telecommunications Act of 1996 and signed by President Bill Clinton on Feb.
8. As noted, because lawmakers expected immediate constitutional challenges,
they included provisions allowing swift appeals first through special panels
and then directly to the U.S. Supreme Court.

Part of the law, known as 223(d), makes it a crime to make indecent material
available on computer systems that are accessible to children and provides
for prison terms of two years and an $250,000 fine if indecent material is
transmitted to minors.  However, the New York panel said government attempts
to limit offensive material to children also would place unacceptable
restrictions on adults. It said the section not only regulates how
pornographic material is sold and advertised, but "how private individuals
who choose to exchange certain constitutionally protected communications with
one another can do so."

Says the New York ruling, "The question presented is whether our Constitution
tolerates this level of governmental intrusion into how adults speak to one
another ... We reach the inescapable conclusion that 223(d) will serve to
chill protected speech."  UPI says the panel -- comprised Jose Cabranes of
the Second Circuit Court of Appeals and District Judges Leonard Sand and
Denise Cote -- discussed software designed to enable parents to limit
children's exposure to inappropriate material, saying, "Indecent content on
the Internet ordinarily does not assault a user without warning: a child
cannot gain access to Internet content with the touch of a remote control and
while accidental viewing of indecent content is possible, there is no
evidence in this record to suggest that it is likely."

Appleson quotes the ruling as adding that while parents can take steps to
restrict access by their children, content providers have no way of
guaranteeing that indecent material will not reach a minor.  The wire service
reports, "The judges said that the only way a content provider would comply
with the section would be to refrain from sending out the objectionable

Said the panel, "Because adults would lack means of engaging in
constitutionally protected  indecent communications over the Internet without
fear of criminal liability, the statute would unquestionably be

                          AT&T, Microsoft Ink Pact

An agreement to jointly promote and distribute each other's Internet products
has been signed by  AT&T Corp. and Microsoft Corp.  Reporting from
Microsoft's Redmond, Washington, headquarters, United Press International
says AT&T's WorldNet Service, which provides access to the Internet, will
distribute Microsoft Internet Explorer software starting in the early fall.
Additionally, the AT&T access service will be included with Micrsoft Windows
95 software.

"Microsoft has been scrambling," UPI comments, "to form such alliances in
order to set itself up as the leading player for software for Internet and
for internal corporate networks, known as Intranets. However, it has fallen
well behind Netscape Communications Corp. in the key category of browser
software."  Meanwhile, AT&T has been actively pushing its Internet access
service, after announcing Feb. 27 that it would offer its 80 million
residential customers a year of  free trial access to the global computer
network of five hours per month.  "We are pleased to offer the browser many
of our customers have been asking for, Microsoft Internet Explorer," AT&T
Vice President Tom Evslin told the wire service.

                        NEC, Ipsilon Make Net Tie-up

A tie-up with U.S.-based Ipsilon Networks to market switching systems that
allow fast data transmission on the Internet and on internal corporate
communications networks called intranets has been announced by Japanese
electronics giant NEC Corp.  Reporting from Tokyo, The Associated Press says
the switching systems, developed by Ipsilon, will cost up to $200,000 each.

NEC officials told the wire service the companies expect annual sales of the
systems in Japan to rise to $360 million by 2001. The companies also plan to
sell the systems jointly outside Japan, but don't have concrete plans yet.
AP says Ipsilon will provide Internet protocol software for the systems,
while NEC will provide asynchronous transfer mode hardware.  Hirokazu Otsuka,
head of NEC's data transmission department, told AP the systems process
information 100 times faster than present data-routing technology and can
handle larger amounts of information.

                      Caldera Alleges Microsoft Unfair

A small software firm backed by Novell Inc. founder Ray Noorda has sued
Microsoft Corp., alleging the software giant willfully maintains a monopoly
over its operating software through unlawful pricing, programming and
licensing.  Salt Lake City-based Caldera, seeking an unspecified amount of
damages, filed the antitrust suit Tuesday in U.S. District Court here, a day
before it acquired the DR-DOS operating system from Novell, according to The
Associated Press.

AP quotes Caldera attorney Stephen D. Susman as saying the company is
pursuing the matter to "open the market to Microsoft competitors."   And
Caldera CEO Bryan Sparks told the wire service, "This is a landmark case in
our industry. We're in a unique position (to sue Microsoft) because as a
company we sell a product and we're not reliant on Microsoft for technology

Adds Susman, "It is our intention to finish the job the Justice Department
left unfinished when it settled its antitrust complaint through consent
decree."  The Caldera suit comes two years after Microsoft settled an
antitrus case brought by the U.S. Justice Department over its base operating
system product. Microsoft was forced to change contracts with personal
computer manufacturers that purportedly shut out competing operating system
software. As reported, in that agreement, Microsoft neither admitted or
denied guilt.

Meanwhile, Microsoft spokesman Mark Murray told AP, "We have not yet seen the
complaint but based on the press release, this appears to be simply a rehash
of tired old allegations that are completely without merit. It's ironic given
all of the new competition and innovation that's going on in the software
industry today that Caldera is filing a lawsuit about outdated technology
that the market has long left behind."

DR DOS, an operating system developed by Digital Research Inc. to rival
MS-DOS, was purchased by Novell in 1991 and discontinued in 1994. AP says
Caldera plans to reintroduce the full line of DR DOS products and offer
additional product features.  "Among the allegations," says AP, "Caldera
accuses Microsoft of  advertising in May 1990 a comparable product to DR DOS
5.0 well before the product was released in June 1991. The practice is known
in the industry as 'vaporware.' When the software was released, 'it did not
offer the features Microsoft had promised,' according to the suit."

In addition, Caldera questions Microsoft's contract and licensing agreements.
The suit says PC manufacturers "were required to pay Microsoft a royalty on
every PC they sold regardless of whether it contains Microsoft's MS-DOS, some
other software developer's DOS software or no operating system software."

And the complaint adds, "Microsoft also informed certain PC manufactures that
they could not obtain Windows or be given access to essential information,
product support and service if they did not purchase and ship MS-DOS, to the
exclusion of DR DOS."  AP says Caldera was founded in 1994 by Sparks with
funding from Noorda. The company is making a commercial version of the Linux
operating system for workstations and advanced personal computers.

                        Netscape Challenges Microsoft

In what is being seen as the latest development in an ongoing battle with
Microsoft Corp.,  Netscape Communications Corp. has released details of
technical standards software developers can use to make sure their programs
can work together over private computer networks.  Reporting from Netscape's
Mountain View, Calif., headquarters, The Associated Press quotes Netscape
also as saying 21 companies have agreed to include Netscape Open Network
Environment standards in their software tools products.

"Such tools," says AP, "will let programmers dice their programs into parts.
The parts should be able to accomplish their task in the original program or
in another one. The idea is similar to the construction of recent office
productivity programs, in which a spreadsheet can be run inside a word
processing program."  Microsoft and Netscape are trying to incorporate the
same functionality into Web documents.

As reported earlier, Microsoft has agreed to transfer control of its similar
technology to an independent standards body. That technology, called ActiveX,
has evolved from one called Object Linking and Embedding, which the company
previously promoted for office productivity applications.   "By giving
ActiveX to an independent organization," says AP, "Microsoft hopes to
demonstrate it is an 'open' technical idea, able to work with information
created or received on any kind of computer and not just those that run
Microsoft operating programs."

                     Cray Says NEC Dumps Supercomputers

Cray Research today filed an antidumping petition charging NEC Corp. with
underpricing supercomputers in an illegal effort to gain U.S. market share
and drive competition from the market.  In a filing with the U.S. Department
of Commerce and the International Trade Commission, Cray said NEC was taking
an estimated $65 million loss to supply vector supercomputers to the National
Center for Atmospheric Research (NCAR) in Boulder, Colorado. Cray also said
the proposed price was significantly less than that charged by NEC on recent
major sales in Japan.

On May 20, NCAR tentatively agreed to purchase four NEC vector  supercomputer
systems as part of a five-year $35.25- million contract with the Federal
Computing Corp. The National Science  Foundation, the primary funding agency
for NCAR, had told NCAR that acquisition of the NEC supercomputers was
contingent on NCAR demonstrating that the computers were not dumped.

NCAR also received bids from Cray and Fujitsu. Cray says it met all NCAR
requirements, but that the center opted for the NEC bid, which offered more
hardware -- but at a price substantially and illegally below the cost of
production.  Cray's petition estimates that NEC will lose a minimum of $65
million on the proposed sale.  Cray calculates that the systems will cost NEC
more than $80 million to prodce versus about $15 million in NEC revenue on
the transaction.

"Cray Research favors open competition based on performance and fair
pricing," says Cray President and chief operating officer Robert Ewald.
"NEC's behavior undermines open competition and could permanently distort
pricing in the supercomputer market. Behavior like this, if not checked, can
lead to less competition and higher prices in the long term."

                          NEC Disputes Cray Charges

Japanese electronics giant NEC Corp. contends U.S. supercomputer maker Cray
Research Inc. is using incorrect figures in lodging an anti-dumping petition
against it over its sales of supercomputers in the United States.  As
reported, Cray accuses NEC of underpricing supercomputers in an illegal
effort to gain U.S. market share and drive competition from the market.

In Tokyo today, the Reuter News Service quotes NEC Vice President Masao Toka
as saying Cray's charge that NEC would lose $65 million in selling
supercomputers to the National Center for Atmospheric Research was a total
fabrication.  Toka said Cray vastly overstated NEC's research and development
costs, while underestimating NEC's revenues.

Says Reuters, "Cray charged on Monday that NEC was taking an estimated $65
million loss to supply supercomputers to the U.S. organization. This was
assuming revenue from the deal of $15 million and costs of $80 million. Toka
said NEC's revenue from the deal would be $30 million, but declined to
disclose costs."  Cray also alleged NEC sold supercomputers in Japan at a
much higher price than in the U.S., but, says Reuters, "Toka said such a
comparison was meaningless, because NEC's sales costs to Japanese
institutions, cited by Cray, included charges for maintenance, system
integration and other services."  Toka said that if Cray's lawyers and
executives were found to have signed the anti-dumping petition with the
knowledge that Cray used wrong figures in calculations of NEC's deal with the
U.S. center, NEC would take legal action against them.

                        Corel, Packard Bell Set Deal

Corel Corp. reports that it has reached a new bundling agreement with PC
maker Packard Bell Inc. that will result in the preinstallation of Corel
WordPerfect Suite 7 on all Packard Bell PCs distributed worldwide.  The
deal's terms weren't disclosed.  Corel WordPerfect Suite 7 includes Corel
WordPerfect 7, Corel Quattro Pro 7, Corel Presentations 7, CorelFLOW 3, 150
fonts and 10,000 clip art images. Each PC will also ship with a copy of the
suite on CD-ROM.

"This agreement represents a huge leap forward in our efforts to increase our
share of the productivity applications market," says Michael Cowpland,
Corel's president and CEO. "Packard Bell has offered us an incredible
opportunity to showcase our new offering."  Corel says the new relationship
will enable Corel to take advantage of Packard Bell's vast, worldwide
marketing channel, as well as to participate with the computer giant at
upcoming trade shows.

                         Hitachi, Robotics Make Pact

A partnership has been launched under which Hitachi PC Corp.'s notebook
computers will be equipped with U.S. Robotics Corp.'s modems.  Reporting from
Palo Alto, California, the Reuter News Service says financial terms were not
disclosed, but the agreement marks the launch of a major effort to expand the
U.S. Robotics brand name, adding the Hitachi products will bear the Robotics
label alongside its own.  "U.S. Robotics said the deal was not exclusive and
could lead to further branding arrangements for its products with other
personal computer makers," the wire service adds. Hitachi Vice President Mark
Yahiro said the modems would be integrated into the Hitachi line of notebook
machines within the next 60 days.

                          Broderbund to Buy T/Maker

Broderbund Software Inc. says it has signed a definitive agreement to
purchase T/Maker Co. from its parent company, Deluxe Corp. T/Maker, based in
Mountain View, Calif., publishes the ClickArt line of clip art software for
desktop and Internet publishing. Terms of the agreement were not disclosed.
Novato, California-based Broderbund says it currently anticipates that
T/Maker, which has approximately 40 employees, will continue to operate in
Mountain View as a wholly-owned Broderbund subsidiary. The acquisition awaits
government approval.

"We see T/Maker as a natural addition to our product line, particularly to
expand the content in our leading Print Shop family with T/Maker's ClickArt
products," says Broderbund President Bill McDonagh. "This acquisition gives
Broderbund's product line another evergreen product that complements and
increases our existing portflio. Combined with the talented development team
at T/Maker, we believe that this is an excellent addition to our business,
both domestically and worldwide."

                      Lexmark Launches Awareness Effort

Printer maker Lexmark International Inc. is hoping that a new brand awareness
campaign will raise its corporate profile.  The multimillion dollar deal with
Grey Advertising and Goldberg Moser O'Neill is Lexmark's first global,
comprehensive branding campaign since it spun off from IBM Corp. in 1991.
"The advertising campaign clearly articulates Lexmark as the value and
performance leader in PC-based printing," says Susan Gauff, Lexmark's vice
president of corporate communications. "To enhance our position, we want
consumers to understand that Lexmark is a fully integrated technology leader
that has consistently led the market with innovations in printer hardware and
software at competitive prices."  The campaign, which features a "Print
Lexmark" theme, will primarily be focused on print advertising before
expanding into broadcast in 1997. Lexmark says the campaign will be
integrated into all aspects of its marketing efforts worldwide, including
public relations and packaging.

                      Apple Releases New Mac QuickTime

Apple Computer Inc. has announced the availability of QuickTime 2.5 for
Macintosh, an enhanced version of its software standard for storing, editing
and playing synchronized video, sound, music, graphics and text.  Apple says
QuickTime 2.5 addresses the needs of content creators for broadcast, music,
film and the Internet.

QuickTime 2.5's new features include an enhanced music architecture,
multiprocessor compatibility, support for 3-D objects; a graphic importer and
support for Closed-Caption technology.  "Digital technology is blurring the
lines between traditional media markets, professional film and video
producers, consumer multimedia developers, and Internet content creators,"
says Carlos Montalvo, director of products and technologies for Apple's
interactive media group. "This has created a significan challenge for the
creative world."

"QuickTime makes it easy for broadcast professionals, CD- ROM developers and
Internet content creators to manage and repurpose their content for new
markets, thereby receiving a greater return on their investments," comments
Ellen Hancock, Apple's chief technology officer and executive vice president
of research and development.  QuickTime 2.5 for Macintosh is available, free
of charge, through Apple's QuickTime home page on the World Wide Web

                        Toshiba to Launch DVD Player

In what The Wall Street Journal characterizes as "a daring move designed to
force Hollywood's hand," Japanese computer giant Toshiba Corp. has set an
autumn launch for the first player for digital video disks (DVDs).  "Even
though the movie industry still hasn't agreed to support the controversial
format," writes Journal reporter Jeffrey A. Trachtenberg this morning,
"people familiar with Toshiba's plans say that the company hopes to create so
much public interest in DVD that the Hollywood studios will feel compelled to
speed up the tangled negotiations that  have so far delayed the players'

But there is a danger, adds the paper, that Toshiba's plans will backfire,
creating "frustration among consumers, as there will be few, if any, titles
available this October," says Trachtenberg.  The Journal notes that for more
than a year, the consumer electronics industry has talked of the five-inch
digital videodisk as the next major improvement in digital home
entertainment. Each disk holds more than seven times the amount of
information contained on a conventional compact disk, and can easily store a
full-length Hollywood movie.

"In addition," says the Journal, "the disks are expected to spawn a new
generation of richer, more  exciting computer multimedia titles because of
their increased data capacity."  The paper detected surprise among Hollywood
executives when they heard of  Toshiba's plans. "Hollywood is worried," says
Trachtenberg, "that it will be too easy to copy the disks onto other disks or
videotape. The studios also want to design the disks with special coding that
will keep them from being played in parts of the world where the disks
haven't yet been released."

                           Enhanced StuffIt Ships

Aladdin Systems Inc., developer and publisher of the StuffIt Macintosh
compression standard, says it is shipping an enhanced version of its StuffIt
SpaceSaver 4.0 software.  The company says StuffIt SpaceSaver 4.0 includes
icon tagging for esier identification of SpaceSaver-compressed files, a
revised and simpler interface, faster compression and several other
enhancements.  "The release of SpaceSaver 4.0 should be a welcome upgrade
because each improvement was specifically asked for by our current users,"
says Jon Kahn, Aladdin's sales and marketing director.  StuffIt SpaceSaver
4.0 is priced at $79.95.

                        Allen Out as Egghead Director

Egghead Inc. has announced that Paul G. Allen, the Microsoft Corp. co-founder
and a long time Egghead investor, will be replaced on the company's board of
directors by Eric Robison, an employee of Vulcan Ventures Inc., a private
investment firm founded by Allen and for which Allen serves as chairman.  In
a statement, Allen noted that, "My many other commitments, both public and
private, compel me to make this decision."  Allen has served on Egghead's
board of directors for over nine years.  Robison will step into Allen's
unexpired term immediately.

The company has also announced that Mel Wilmore, president and chief
operating officer of Ross Stores Inc., has agreed to serve on the board.  A
statement issued by Egghead notes that Wilmore will bring "great depth of
experience in retail operations to Egghead."  Egghead, a retailer of computer
software, hardware and accessories, has had a difficult time prospering in a
market dominated by computer superstores. The firm is located in Spokane,

                      Prodigy's New Chief Takes Command

The new owner of the Prodigy online service has reorganized the company and
installed new management as it completed its acquisition yesterday.  As
reported earlier, International Wireless Inc. a Cambridge, Massachusetts,
firm that invests in cellular and Internet technology abroad, last May led
the $250 million buyout of Prodigy from its former owners, IBM and Sears,
Roebuck & Co.

Writing in The Wall Street Journal this morning, reporter Jared Sandberg says
the buyer now has  merged its operations with Prodigy's, renamed the combined
companies Prodigy Inc. and installed two Interntional Wireless executives as
chairman/CEO.  "Prodigy, which has one million members and almost no growth,
has been falling far behind rivals," Sandberg says. Ed Bennett, the former
Viacom Inc. executive who was hired last year to pull the ailing on-line
service out of its funk, "was forced to scrap his turnaround effort when
Sears clamped down on new investments and began shopping its half of the
service last November," he adds.

Now, though, Bennett, who was Prodigy's CEO, "will exercise a far smaller
role, though one  near to his heart. He will head a new venture-capital
division, dubbed Prodigy Ventures Inc., which will invest in new technology
and media, not necessarily for the online service."  The Journal quotes one
official as saying Bennett will have as much as $50 million to invest in a
new   concerns, noting that last year Bennett started a similar strategy, his
so-called Wildflower initiative, to invest in start-ups but was halted by the
company's former owners.

Meanwhile, the new CEO at Prodigy is Paul DeLacey, who had been International
Wireless' chief operating officer. IW Co- Chairman Greg Carr denied reports
the move was pushing Bennett aside, saying, "If I really wanted to push Ed
aside, I could have just given him a bunch of stock. I wouldn't put a whole
bunch of money under his control if I didn't believe in him."

Meanwhile, executives at Prodigy told the paper they hope to turn the service
around by leveraging existing partnerships of International Wireless and
Prodigy's shift to the Internet. Bennett said much of Prodigy's electronic
fare is already compatible with the Internet and that new software based on
Internet technology will be shipped this fall.

                      Study Offers Cyberspace Snapshot

A new study from IntelliQuest Information Group Inc. offers yet another
cyberspace snapshot. The Austin, Texas-based market research firm reports
that the U.S.  Internet/online population consists of approximately 35
million adults (age 16 and above), with only two and a half million people
using the Internet and online services more than 20 hours per week. The study
also finds that the Internet and worldwide online services are growing
rapidly, with 9 million people -- 26 percent of the total user base -- first
accessing the Internet in the first quarter of 1996.

Among the study's other findings:
    Eighteen million users primarily access cyberspace at home, versus 9
     million people who access from work and 5 million from school
    Over 21 million non-users indicated they intended to begin using the
     Internet or an online service in the next twelve months (as of the start of
     1996's second quarter).
    Most users are very selective and focused in their use of the Internet
     or online services, with only 19 percent indicating that they "cruise" or
    Only 17 percent of online users find online entertainment better than
    Only 7 percent of users had purchased a product or information online
     during a one-month period measured by the study.

                            PC Sales Growth Slows

Dataquest Inc. researchers says sales of personal computers grew more slowly
in the second quarter than in the first.  Business writer Evan Ramstad of The
Associated Press says the PC market grew 16.5 percent worldwide and 12
percent in the United States, down from 18.4 percent worldwide growth and
14.7 percent U.S. growth in the  first quarter. Growth in both markets
exceeded 20 percent during the second quarter of 1995.

The study says Compaq Computer Corp. still leads the industry but the Houston
computer maker  lost ground in both worldwide and U.S. sales to second-place
IBM and others.  Compaq's worldwide market share was 9.7 percent and U.S.
share was 12.4 percent in the second quarter. During the first quarter,
Compaq had a 9.8 percent worldwide market share and 12.7 percent in the
United States. A year ago, Compaq had 10.4 percent of the world market and
12.6 percent of the U.S. market.

Meanwhile, IBM's worldwide PC market share jumped to 8.8 percent from 7.2
percent in the first quarter and its U.S. share jumped to 9.0 percent from
6.1 percent in the first quarter. A year ago, IBM had 7.7 percent of the
world PC market and the U.S. market.  AP notes IBM was the No. 1 PC seller
for many years until it was unseated by Compaq in 1994. Compaq's growth was
8.5 percent worldwide and 10.4 percent in the United States. IBM's growth was
33.6 percent worldwide and 31.1 percent in the United States.

Still in third place worldwide is Apple Computer, though ataquest says its
sales dropped nearly  17 percent. The company had 5.3 percent of the world
market and 7.4 percent of the U.S. market, where it was No. 4 in sales.  In
the U.S. market, the third palce was held by Packard Bell, with an 8.7
percent share, though growth was a slim 3.8 percent. Its overseas operations
are too small for the company to count among the five largest worldwide PC
sellers, Ramstad observes.  Rounding out the field were NEC as the fourth
largest worldwide PC maker with 5.1 percent of  the market, Hewlett-Packard
next with 4.3 percent and Dell Computer Corp. as fifth in U.S. sales with a
7.2 percent market share.

                        IDC Says U.S. PC Market Grows

The U.S. PC market continued its pattern of substantial unit growth in the
second quarter,  dispelling lingering concerns about a possible market
slowdown, says market researcher IDC. IDC notes that Compaq Computer Corp.
once again led the market, despite slipping slightly in market share as it
prepared for several major product transitions. IBM rejoined the firm's top
five vendor list, boosted by rising portables sales and the smooth
introductions of new products.

The overall market grew 18 percent from the year-ago period to 5.96 million
unit shipments. This compares favorably with the first quarter growth rate of
16 percent, says IDC. Sales accelerated in portables and commercial desktops,
propelled by new products from major vendors and healthy economic conditions.
Consumer sales were seasonally slow, notes IDC, as vendors prepared for a
wave of new home PCs by clearing retailer's inventories of older systems.
"Some keep predicting a major PC drought, but market conditions in the second
quarter  continued to produce good growth, especially for major vendors
boasting complete product portfolios," says Bruce Stephen, IDC's vice
president of worldwide personal systems. "We think  the ingredients are in
place to reap a strong second half."

                       Net Connectivity a CD-ROM Trend

New research finds that hybrid CD-ROMs -- discs that include online
communications, links to expanded content and/or network game play -- are
rapidly proliferating, breaking out of vertical professional and corporate
markets and into the consumer mainstream.  From just 311 titles in print
worldwide at year end 1995, the number of hybrid CD-ROM/online titles in
print worldwide is projected to more than double to 720 by the end of 1996,
according to market researcher InfoTech of Woodstock, Vermont. InfoTech
predicts that the hybrid CD-ROM market will surge to 3,500 titles in 1997,
accounting for nearly 10 percent of all CD-ROM titles in print worldwide.

Intense competition in the consumer games, entertainment, reference, and
software applictions markets are spurring the growth in hybrids, says
InfoTech President Julie B. Schwerin. "In certain genres, such as
encyclopedias and action games, hybrids, while relatively new, are dominating
retail sales. This is raising the production bar -- online connectivity is
increasingly a feature that consumers expect. Consequently, publishers are
rushing to upgrade existing products and outfit new ones with embedded or
bundled browsers to access complimentary online content."

According to InfoTech, Internet service providers and commercial online
services are encouraging the hybrid trend, viewing commercial CD-ROMs as a
vehicle for customer recruitment. InfoTech projects that by the end of 1996,
41 percent of hybrid titles will connect to the World Wide Web, 34 percent to
private dial-up networks or bulletin boards and 25 percent to  commercial
online services, including online game networks.

Hybrid publishers are also experimenting with online transactions,
advertising and merchandise sales as well as selling premium subscription
services. But Schwerin cautions that most consumer hybrid publishers are not
yet generating revenue from online sources. "Most publishers view hybrids as
a competitive weapon and a marketing tool -- the latest feature you need to
get on the shelves and attract consumers," she says. "At the same time, most
do intend to derive significant online revenues within two to three years."

                        New Net Audio System Launched

Software that promises to make voice and music received over the Internet
sound as good as  music-CDs is being launched by Macromedia Inc., which is
calling this a breakthrough advance from typical choppy, static-filled sound
of current Net audio.  Writing from San Francisco for the Reuter News
Service, Barbara Grady reports the new version of the product called
Shockwave also vows to avoid the long download time sometimes needed to get
audio from the Internet before it can be heard.

Engineering Vice President Norman Meyrowitz told the wire service, "The
difference between te old Shockwave and the next will be like the different
between an old record and a CD. It is going to really change the nature of
audio on the Web."  Adds Grady, "The new version uses a technology called
audio streaming, along with compression of the audio digital information. ...
In streaming, digits of audio data are received in packets a little at a time
-- or just enough to keep  the sound coming in a normal-sounding way."  This
differs from regular packet transmission, which produces static filled bursts
of sound that does not replicate a real voice, she adds. Since Macromedia
introduced its original Shockwave seven months ago, some 10 million or more
people have downloaded it off of the Internet to use on hundreds of sites
developed with it.

                      Poll Predicts Net Revenue Growth

A new survey finds a majority of those in the interactive industry cautiously
optimistic about growth in advertising revenues, online shopping sales and
number of subscribers by the end of  the year.  The respondents also predict
commercial online services will be need to create a new business model to
ensure their future as consumers flock to the Internet and the World Wide

Conducted during this week's 11th annual conference of the Interactive
Services Association in  San Diego, California, the survey, which used 200
polling devices provided by NTN Communications, found:

    Forty-two percent of the membership believes the number of paid
     subscribers will remain under 20 million through 1996, with only 16 percent
     confident it would reach more than 30 million.
    Some 78 percent of the voters predicted ad revenues would not exceed
     $200 million and 85 percent felt that online shopping would stay under $400
     million, the most conservative choices.
    Thirty-two percent predict a typical World Wide Web content site will
     take four years to make a profit, 23 percent think it will require two years
     and only 3 percent one year. However, 40 percent believe that a typical site
     will never break even.
    The vast majority (74 percent) believe that the online services will
     need to create a new way to stay profitable while competing with the Internet
     and Web direct access facilitators, while only 14 percent anticipate that the
     online services will become the Net gateway of choice.

Meanwhile, those polled were divided on the future of Internet appliances.
Forty-eight percent said Net appliances would be valuable to consumers, but
would meet with limited success, while 26 percent felt the products would
fail and 20 percent indicated they believed such appliances were the answer
for universal access for the populace.

However, a combination of phone and Net integration is perceived as the
hottest telephone application of the next five years, according to 59 percent
of the members.  "For those betting on the most successful areas of growth in
the interactive industry," says an ISA statement, "the membership
overwhelmingly predicts that the companies focusing on transactional support
processes would be the most attractive stocks for institutional investors.
Sixty-eight percent voted for transaction support, with 15 percent
maintaining they would recommend staying out of the market and another 11
percent would propose investing in search engines."  Also, noted the
statement, "Interestingly, more than 71 percent believe the Internet will
change the world, but only 16 percent perceive the Internet to be a source of
revenue in the future."

                        Intel Seeks PC in Every Home

Chipmaker Intel Corp. is pushing ahead with its hopes of seeing a PC in every
home, inviting some 1,500 content developers, entertainment writers and
advertising professionals to a show of  creative things that can be done
using a PC and the Internet.  Reporting from San Francisco, Barbara Grady of
the Reuter News Service notes that in one example Intel and Sony Corp.
demonstrated how the Internet could be used to bring a live performance by a
musician in France into a personal computer in the United States.

Intel also has launched a new program to give software designers and the
people who create entertainment access to the latest technology to help them
build glitzy software.  Says Vice President Ron Whittier, general manager of
Intel's Content Group, "We want them to develop content that is more
demanding of the PC."  Intel says that next year it will provide souped-up
multimedia chips  known as MMX technology, 3-D graphics controllers and
advanced audio processing for mainstream PCs in the $2,000 price range.
Reuters says the firm also is working outside its industry with disk drive
makers and telecommunications companies to get non-chip technology into the
market -- such as digital video disk technology, or DVD, and Internet

                         Priest Advises Net Audience

Advice in cyberspace to people with personal problems ranging from marriage
to suicide is being provided by a Singapore Catholic priest.
Thirty-five-year-old Father John Paul Tan tells the French Agence
France-Press he receives about a dozen e-mail messages from people from all
walks of life for about two hours daily, the time he had allocated for such
type of social service.

"Most people who message me are young adults and those studying in the
universities," says  Father Tan, one of four priests at the Church of St.
Mary of the Angels in western Singapore island.   AFP says Catholics and
non-Catholics make appointments with him to discuss marriage plans, ask for
advice about relationship problems, or send queries about religion and God.
"His online interaction was via a computer in his room, which he checks three
times a day," the  wire service reports. "He takes about a week to compose
replies to each message he receives."  But the priest draws the line at
online confessions. "Giving advice on the Internet is fine, I think,"  he
says, but "the nature of confessions is so personal and it is not possible to
convey emotions and sensitivity over the Internet."

                        James Dean Web Sites Feuding

A landmark case involving copyright law on the Internet may be growing out of
a feud between wo sites on the World Wide Web, both devoted to the memory of
legendary actor James Dean.  According to the Reuter News Service, Curtis
Management Group Worldwide, licensing agents for the James Dean Foundation,
has filed suit in Marion County Superior Court in Indiana against
California-based American Legends and its principals, James Pitts, Martin
Pitts and Ronald Martinetti.

Says Reuters, "CMG, which also represents such dead celebrities as Marilyn
Monroe, Humphrey Bogart and Babe Ruth, is charging that the American Legends
Internet site illegally uses Dean's signature and several photos that are
protected by CMG....American Legends disputes CMG's  charges."  Martinetti,
an attorney and author of a Dean biography, recently told Daily Variety
newspaper, "We believe that the Foundation and CMG's threat to suppress our
site raises some interesting issues regarding free speech and access to
information on the Net."   American Legends maintains a James Dean Web site
at Web address, while CMG's site is at

                       Engineer, Intel Feud Over Logo

A Texas computer chip design engineer says he is drawing fire from chip giant
Intel Corp. because of his online spoof of the company logo.  Intel wants
Robert Collins to stop using his version of its company logo on his site on
the Internet's World Wide Web, saying Collins has "tarnished" the symbol, a
valuable property it says it must protect. However, Collins contends his
takeoff is legitimate.  "It's a parody," he told business writer Catalina
Ortiz of The Associated Press, adding there are  disclaimers and marked
differences between the logos, which he said ensure that viewers understand
he has no connection with Intel.  Meanwhile, Collins said he thought Intel
might be miffed by his Web site that reveals undisclosed details of the
company's computer chips.

Called "Intel Secrets: What Intel Doesn't Want You To Know," Collins' site
(reached at Web address offers information on errors in
Intel's industry-leading chips and gives programming tips.   But Intel says
the content of Collins' site is information that can be obtained legitimately
from working with the chips and isn't the issue.   Instead, what Collins did
with Intel's logo, a distinctive arrangement of letters in the company's
name, has the firm fuming.   Ortiz notes, "The company's logo is the word
'Intel' in lower-case with the 'e' dipped below the other letters. Collins'
'Intel Secrets' logo uses the same typeface as Intel but reverses the letter
'e' and puts over it the word the international symbol of a red circle with a
line across it. It also puts the word 'secrets' in the same typeface and dips
the first 'e.'"

Chuck Molloy, a spokesman for Santa Clara, California-based Intel, says
Collins' argument that his logo is just a parody -- a fair use of the symbol
-- doesn't work. While people can properly parody a company's name, he said,
they cannot properly parody a logo, which is considered artwork.  Says
Molloy, "The issue here is it's just like any other piece of property. And
it's our obligation to protect Intel property. And if we don't take active
steps to protect it, we could lose our legal rights."

AP says Intel does not intend to go after Collins for alleged trademark
violation, but it does intend to fight his application to trademark his
"Intel Secrets" logo.  Collins, who works for Texas Instruments Inc. in
Dallas, says he already has changed his logo at Intel's request, but Intel
said the changes don't go far enough. (Originally Collins just used his
version of the words "Intel Secrets." Says Ortiz, "He later added the red
circle, the disclaimer and 'Intel Absolutely Not Inside,' a jab at the
company's 'Intel Inside' phrase.")

                      Mac Anti-Virus Software Upgraded

McAfee Inc. has introduced VirusScan 2.0 for the Macintosh, an enhanced
version of its anti-virus software.  The product, which was originally based
upon sorce code licensed by McAfee from Northwestern University, now
incorporates over thirty new features.  According to Santa Clara,
California-based McAfee, VirusScan 2.0 for the Macintosh provides protection
against all known Word Macro viruses, conventional viruses, Hypercard Stack
viruses and trojan horses.

"VirusScan for the Macintosh has evolved dramatically since its introduction
in December 1995," says Chris Harget, anti-virus product manager at McAfee.
"Today, just seven months later, we've delivered on our commitment to create
an industry-leading anti-virus solution for the Macintosh. Viruses pose an
increasing threat to the Macintosh user community, especially with the rapid
growth in the number of multi-platform Word Macro viruses."  VirusScan 2.0
for the Macintosh is scheduled to begin shipping on August 9. It will have an
estimated street price of $49.

                         16 Charged in Net Porn Ring

Sixteen men have been accused of participating in an international Internet
pedophilia ring in which, authorities allege, members once chatted online
while a 10-year-old girl was being molested.   Thirteen of the men have been
arrested, while the other three still are being sought.  The San Jose,
California, federal grand jury indictment handed down yesterday alleges the
men  belonged to a group called the "Orchid Club," a chat room in which users
swapped stories about child sex and conspired to produce and exchange
sexually explicit images of girls as young as 5.  Says The Associated Press,
"The images -- called 'privates' -- included still photographs and
movie-like files created with digital video cameras."  FBI spokesman George
Grotz told the wire service, "Many of the subjects not only viewed this child
pornography but actually took part in assembling it and producing it
themselves. That's what makes this case unique."

AP quotes authorities as saying people were allowed to join the club only
after members recommended them. "After receiving a password to enter the chat
room," says the wire service, "they were initiated by recounting a sexual
experience with a child."   The FBI says its investigation was sparked by the
arrest of Californians Melton Lee Myers, 55, of Santa Rosa and  Ronald Riva,
38, of Monterey County.   AP reports, "Authorities said the two men
orchestrated a video session in April with a 10-year-old Monterey County girl
who was instructed to pose in sexually explicit positions at the request of
members in the United States and Finland who watched the images being
instantly transmitted to their computers, the indictment said."

Besides California, suspects are from Oklahoma, Washington, Kansas, Illinois,
Minnesota, Michigan, Mississippi, Massachusetts, Australia, Canada and
Finland.  The men are charged with conspiracy to possess and distribue child
pornography. Six of them, including Myers and Riva, also were charged with
aiding and abetting in the sexual exploitation of children.  Authorities say
that, if convicted, each defendant faces up to 10 years in prison and a
$250,000 fine for each count of the indictment.

                     CD-ROM Pirates Get Long Jail Terms

A Singapore court has handed two convicted CD-ROM pirates the longest jail
terms in Southeast Asia for copyright infringement.  United Press
International reports that the two men, who were sentenced to 30 months and
18 months in jail respectively, both owned and operated shops that sold
counterfeit CD-ROMs.  UPI adds that private investigators hired by the
Alliance Against CD-ROM Theft discovered the two stores in Singapore's Sim
Lim Square, a mall specializing in computer and electronics products. The
investigators alerted Singapore police to the illegal activities, which led
to raids of the shops and the recovery of more than 5,000 fake CD-ROMS.

Adobe NewsWire STR Infofile

                       Adobe Systems Announces Support
                  Microsoft Windows NT 4.0 Operating System

Mountain   View,  Calif.,  (July  31,  1996)  (Nasdaq:  ADBE)-Adobe   Systems
Incorporated  today announced plans  to deliver Microsoftr  Windows  NTr  4.0
compatible products that take advantage of the enhanced levels of  power  and
ease of use offered by Microsoft Corporation's new operating system.

Adobe's  planned support of Windows NT 4.0 software continues its  commitment
to deliver 32-bit applications  that maximize the robust functionality of the
Windowsr  platform.  Adobe  applications  currently  supporting   Windows  95
include, FrameMakerr, PageMakerr, Photoshopr and Adobe Type Managerr.   Adobe
products  expected to support Windows NT 4.0 in forthcoming releases  include
Adobe  Acrobatr,  Adobe  After  EffectsT,   FrameMaker,  Adobe  Illustratorr,
PageMaker,  Adobe  PageMillT, PhotoDeluxeT, Photoshop,  Adobe  Premiere   and
Adobe Type Manager software.

Adobe  offers a broad range of support for Windows 95 and Windows NT features
in  existing  applications  including OLE 2.0 support  with  drag  and  drop;
context-sensitive  menus;  long  file names;  and  symmetric   multiprocessor
support, which delivers workstation-level performance to the Windows desktop.

"Adobe  continues to lead the way in delivering new 32-bit applications  that
take  maximum  advantage of  Windows NT and Windows 95 ," said Bryan  Lamkin,
director  of  graphics  products, Adobe Systems Incorporated.  "The  improved
performance,  robustness, and ease of use offered  by  Windows  NT  4.0  will
greatly  enhance  the creative experience for our Windows  customers  in  the
print,  video  and  Internet  markets."For Immediate Release  Press  contact:
Thrse   M.   Bruno   206  470.7568  Fax  206  470.7125

Adobe Systems Announces Support for Microsoft Windows NT 4.0 Operating System
As  a demonstration of  its commitment, Adobe intends to submit a broad range
of  its 32-bit Windows products for compliance testing  required to carry the
new  "Designed for Windows NT and Windows 95" logo, which will help end users
easily  identify applications that are compatible with both Microsoft Windows
95 and Windows NT 4.0.

Based  in  Mountain  View,  Calif., Adobe Systems Incorporated  develops  and
supports  products  to  help  people  express and  use  information  in  more
imaginative  and  meaningful  ways, across all print  and  electronic  media.
Founded  in  1982,  Adobe  helped launch the desktop  publishing  revolution.
Today, the company offers a  market-leading line of application software  and
type  products  for  creating and distributing visually  rich   communication
materials;  licenses  its industry-standard technologies  to  major  hardware
manufacturers,   software  developers,  and  service  providers;  and  offers
integrated  software  solutions  to  businesses  of  all  sizes.   For   more
information,  see the Adobe home page at  on  the  World
Wide Web.

Adobe, the Adobe logo, Acrobat, Adobe After Effects, FrameMaker, Adobe
Illustrator, PageMaker, Adobe PageMill, PhotoDeluxe, Photoshop, Adobe
Premiere and Adobe Type Manager are trademarks of Adobe Systems Incorporated.
Microsoft, Windows and Windows NT are registered trademarks of the Microsoft

EDUPAGE STR Focus    Keeping the users informed


Children To Get Three Hours Of "Educational" TV
Anti-Terrorism Plans a Threat To Civil Liberties?
Another Ruling Against CDA
Netscape And Microsoft Duel Over Intranet Market
Educational Software
Cray Charges NEC of "Dumping" Supercomputers
Toshiba Will Offer First DVD Player
Copland May Emulate Windows And Unix
IBM's Olympic-Sized "Element Of Risk"
Japan/U.S. Chip Pact Expires
Microsoft Releases Windows NT 4.0
IBM, Oracle, Next Jump On The Intranet Wagon
Cellular Phone Companies Fight Cloning
G7 Leaders & The Internet
Canadian SP's Tackle Objectionable Material
Dell Opens Up Shop On The Internet
Fastest Macs Aren't Made By Apple
Certified Web Sites
Microsoft Wants To Be Largest Advertiser On The Net

Television broadcasters have agreed to Clinton Administration requests to
transmit three hours a week of  educational TV for children, though there
will be considerable flexibility in the definition of "educational."   The
agreement specifies only that the FCC "will ordinarily rely on the good faith
judgment of the  broadcasters" and will dispute their judgments "only as a
last resort."  (Atlanta Journal-Constitution 30 Jul 96 A3)

                        CLINTON ANTI-TERRORISM PLANS
To fight terrorism, the Clinton administration is proposing a number of
measures which civil libertarians say  pose a serious threat to the freedoms
of innocent users of phones and computers.  A spokesman for the  American
Civil Liberties Union says:  'The president is using the bombing in Atlanta
as a pretense to getting  more wiretap authority.  The answer to terrorism
isn't to limit the freedoms of Americans. If we do that, the  terrorists have
already won.''  (San Jose Mercury News 30 Jul 96)

Echoing a decision made last month by federal judges in Philadelphia, a three-
person panel of federal judges in  Manhattan rule the Communications Decency
Act (part of the Telecommunications Act of 1996) to be unconstitutional.  The
Act makes it a felony to transmit "indecent" or "patently offensive" material
over  computer networks where children might have access to it.  The law suit
involved an Internet-based newsletter opposed to legislation banning indecent
but constitutionally protected speech on the Internet.  The newsletter's
author says it was "laced with four-letter and multisyllabic obscenities
familiar to anyone and, frankly, the day  I published that article, I had
some very real fears of going to prison.  But I felt so deeply that our
rights were  violated by the law, I had an obligation to fight it."  The
Justice Department is appealing the Philadelphia  decision to the U.S.
Supreme Court.  (New York Times 30  96 A7)

Netscape will give away software tools that make it easier for developers to
write programs for internal  company "intranets" using Internet formats.  The
tools will be compatible with Netscape ONE -- Netscape's  name for a set of
proposed industry standards that includes Corba, which competes with ActiveX,
the proposed  standard developed by Microsoft.  By giving away Corba and
other software-development tools that run on  any computer operating systems,
Netscape is trying to draw the attention of software developers away from
ActiveX, which will initially run only on Microsoft Windows operating systems
when it is released some  months from now.  (Wall Street Journal 29 Jul 96

                            EDUCATIONAL SOFTWARE
The Software Publishers Association predicts the K12 educational technology
market will grow from $2.6  billion in 1993-94 to $4.5 billion by 1999.  A
significant increase is also expected in the development of  commercial
software for higher education use.  Educom president Robert C. Heterick Jr.
says the ways to  reduce the cost of higher education (which has tripled over
the last decade, largely because of teacher salaries)  is through the use of
information technology in the colleges and universities:  "Today you're
looking at a  highly personal, human-mediated environment.  The potential to
remove the human mediation in some areas  and replace it with automation --
smart, computer-based, network-based systems - is tremendous.  It's gotta
happen."  Heterick says the likeliest candidates include courses such as
basic math, English and science.  (New  York Times 29 Jul 96 C5)

Cray Research filed an ''anti-dumping'' petition against NEC Corporation,
claiming that the Japanese company  is selling supercomputers on the American
market at less than what it costs to make them.  In its complaint to  the
Commerce Department and International Trade Commission, Cray is charging that
NEC is taking an  estimated $65 million loss to supply supercomputers to the
National Center for Atmospheric Research.  (Investor's Business Daily 30 Jul

By offering the first DVD player [Digital Video Disk or Digital Versatile
Disk] this Fall even though the  movie industry still hasn't agreed to
support the new format, Toshiba Corporation is hoping that its launch will
create so much public interest in DVD that Hollywood will be forced to speed
up the multi-industry  negotiations that have delayed the introduction of the
players.  Each DVD holds more than seven times the  amount of information
contained on a conventional compact disk.  (Wall Street Journal 29 Jul 96

Sources close to Apple are saying that the company's new Copland operating
system, scheduled now for  release next summer, will be able to emulate
Windows, Windows NT, or Unix from within the Macintosh  operating system, but
the product manager for Copland denies that there is an effort to add Windows
capabilities.  (Computerworld 29 Jul 96 p1)

IBM chief executive Lou Gerstner told shareholders last April that the
Centennial Olympics would provide  IBM a chance to show its best on a world
stage, but admitted:  "I don't need to tell you there's an element of  risk
in stepping onto that stage."  Following the well-publicized problems with
the computerized system it  developed for the Olympics, IBM said this week
that, "in the light of how our system performance has been  perceived,"  it
had "reconsidered some ads" that it had been planning to run in various
newspapers.   (New York Times 29 Jul 96 C5, 30 Jul 96 C5)

                        JAPAN/U.S. CHIP PACT EXPIRES
The Japan/U.S. semiconductor market share agreement has expired, with both
sides still far apart on terms for  its renewal.  Japan insists that the
European Union be included in the pact whereas the U.S. wants to negotiate a
new bilateral agreement.  Both sides believe the expiring agreement has been
a useful one, and a senior U.S.  official says that "the point of the
agreement was not to reach an arbitrary number but to force the Japanese to
look at and integrate foreign producers into their production."  (Financial
Times 1 Aug 96)

                      MICROSOFT RELEASES WINDOWS NT 4.0
Windows NT 4.0 holds Microsoft's hopes of beating strong competitors like
IBM, Oracle, Sun, HP, Netscape  and others in the race to provide software
for corporate and other large networks.  Windows NT is the basis of
Microsoft's Back Office software suite that generated more than $1 billion
last year, which represented 11% of  Microsoft's total revenue.  (USA Today
31 Jul 96 2A)

In separate recent announcements, IBM, Oracle and Next Software all have
reaffirmed their commitment to  corporate intranet support, following
Netscape's lead in helping companies use intranets for information- sharing,
publishing and collaborative work.  "Large user organizations are trying to
figure out what role the  strategies play relative to the technology they
already have and how they can leverage both," says a manager in  the
strategic technology group at Coopers & Lybrand.  IBM plans to provide Smooth
Start Services, a turnkey  package that includes intranet server planning,
configuration, installation, application development and training. Oracle's
strategy is based on its Oracle Web Server 3.0, which will ship later this
year, and will  contain a Web Request Broker that supports the ability to
manage databases from intranet applications.  Next has forged a partnership
with Netscape to jointly market Next's WebObjects software with Netscape's
SuiteSpot server software and Navigator Gold browser. (Information Week 22
Jul 96 p28)

To fight the illegal practice called "cloning," cellular telephone carriers
will be adopting new "smart phone"  technology intended to foil high-tech
criminals by matching calls with encoded passwords.  In cloning, pirates use
portable scanners and computers to intercept the cellular phone user's phone
and serial numbers as they are  being broadcast to a transmitting tower or
"cell site."   The new digital phones will contain a non-clonable ''smart
cards'' that encrypt the identifying information to prevent scanners from
eavesdropping or cloning the  customer's telephone number.  (San Jose Mercury
News 1 Aug 96)

                          G7 LEADERS & THE INTERNET
Experts on electronic communications said ideas presented by G7 leaders for
fighting terrorism by restricting  access to the Internet are "naive and
probably unworkable" because there are too many ways to circumvent censorship
on the Net to believe regulation could prevent terrorists from using the
technology for  communications.  (Toronto Globe & Mail 1 Aug 96 A4)

                           OBJECTIONABLE MATERIAL
Canadian access providers are developing guidelines for dealing with
potentially objectionable material and  have set up a code of conduct
committee, with goals that include establishing guidelines members can use to
determine if information stored on their servers is illegal.  (Toronto Globe
& Mail 1 Aug 96 B1)

Dell Computer is taking its direct sales strategy one step further into
cyberspace.  Its new "virtual store" at < > allows
shoppers to fill out an order form, outline their PC specifications, and
submit a  payment option (purchase order, corporate lease or credit card),
all on the Web.  The company promises the  online transactions will be
secure.  "We're in a really good position to do this and help lead the
transition" to  online selling, says a Dell spokesman. (Investor's Business
Daily 29 Jul 96 A6)

                      FASTEST MACS AREN'T MADE BY APPLE
The company that manufactures the fastest Macs in the land isn't
headquartered in Cupertino, Calif., but rather  is located just outside
Austin, Texas.  Power Computing, a Mac cloner, is already shipping a
superfast  machine based on a 225-megahertz PowerPC chip, and early this
month plans to announce home Macs with  speeds up to 240 Mhz -- well above
Intel's 200-Mhz zenith.   (Business Week 5 Aug 96 p6)

                             CERTIFIED WEB SITES
The National Computer Security Association in Carlisle, PA., will certify
that a Web site meets minimum  security specifications, including the
presence of firewalls, use of passwords, and encryption of sensitive data
transmission.  Certifications costs $8500 a year and requires that the site
submit to remote tests, an NCSA site  visit, and random compliance audits.
(Computerworld 29 Jul 96 p2)

Microsoft chief operating officer Bob Herbold says that Microsoft is using
the Internet to do "real-time  marketing," with the goal of becoming the
largest advertiser on the Internet.  Herbold cited a recent campaign  in
which Microsoft responded to a Netscape ad on the Web offering $66 upgrades
to its Navigator program by  quickly blanketing the Web with competing ads
offering Microsoft's Explorer software free.  (New York Times 1 Aug 96 C2)

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