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.FBI raids major Ohio computer bulletin board; action follows joint
investigation with SPA
The Federation Bureau of Investigation on Saturday, Jan. 30, 1993, raided
"Rusty & Edie's," a computer bulletin board located in Boardman, Ohio,
which has allegedly been illegally distributing copyrighted software
programs. Seized in the raid on the Rusty & Edie's bulletin board were
computers, hard disk drives and telecommunications equipment, as well as
financial and subscriber records. For the past several months, the Software
Publishers Association ("SPA") has been working with the FBI in
investigating the Rusty & Edie's bulletin board, and as part of that
investigation has downloaded numerous copyrighted business and
entertainment programs from the board.
The SPA investigation was initiated following the receipt of complaints
from a number of SPA members that their software was being illegally
distributed on the Rusty & Edie's BBS. The Rusty & Edie's bulletin board
was one of the largest private bulletin boards in the country. It had 124
nodes available to callers and over 14,000 subscribers throughout the
United States and several foreign countries. To date, the board has logged
in excess of 3.4 million phone calls, with new calls coming in at the rate
of over 4,000 per day. It was established in 1987 and had expanded to
include over 19 gigabytes of storage housing over 100,000 files available
to subscribers for downloading. It had paid subscribers throughout the
United States and several foreign countries, including Canada, Luxembourg,
France, Germany, Finland, the Netherlands, Spain, Sweden and the United
Kingdom.
A computer bulletin board allows personal computer users to access a host
computer by a modem-equipped telephone to exchange information, including
messages, files, and computer programs. The systems operator (Sysop) is
generally responsible for the operation of the bulletin board and
determines who is allowed to access the bulletin board and under what
conditions. For a fee of $89.00 per year, subscribers to the Rusty & Edie's
bulletin board were given access to the board's contents including many
popular copyrighted business and entertainment packages. Subscribers could
"download" or receive these files for use on their own computers without
having to pay the copyrighted owner anything for them.
"The SPA applauds the FBI's action today," said Ilene Rosenthal, general
counsel for the SPA. "This shows that the FBI recognizes the harm that
theft of intellectual property causes to one of the U.S.'s most vibrant
industries. It clearly demonstrates a trend that the government understands
the seriousness of software piracy." The SPA is actively working with the
FBI in the investigation of computer bulletin boards, and similar raids on
other boards are expected shortly. Whether it's copied from a program
purchased at a neighborhood computer store or downloaded from a bulletin
board thousands of miles away, pirated software adds to the cost of
computing. According to the SPA, in 1991, the software industry lost $1.2
billion in the U.S. alone. Losses internationally are several billion
dollars more.
"Many people may not realize that software pirates cause prices to be
higher, in part, to make up for publisher losses from piracy," says Ken
Wasch, executive director of the SPA. In addition, they ruin the
reputation of the hundreds of legitimate bulletin boards that serve an
important function for computer users." The Software Publishers Association
is the principal trade association of the personal computer software
industry. It's over 1,000 members represent the leading publishers in the
business, consumer and education software markets. The SPA has offices in
Washington DC, and Paris, France.
CONTACT: Software Publishers Association, Washington
Ilene Rosenthal, 202/452-1600 Ext. 318
Terri Childs, 202/452-1600 Ext. 320