U.S. Software Executives Endorse White House Electronic Commerce Paper

WASHINGTON, D.C.-- (July 1) -- The architects of the Internet -- the U.S. software industry -- today endorsed the long-awaited policy strategy paper from the White House on electronic commerce, framing the backbone of information-based business on the National Information Infrastructure -- the "next stage" economy.

At a press briefing today sponsored by the Business Software Alliance, Dr. Eric Schmidt, Chairman and CEO of Novell, Inc., reiterated the software industry's support for the report -- primarily authored by Ira Magaziner, explaining that "electronic commerce constitutes a critical, promising engine for U.S. economic growth." Just last month, Schmidt was the lead spokesperson on electronic commerce at a BSA-sponsored CEO Forum which included ten CEOs from the leading high tech companies. The CEOs sent a joint letter to President Clinton and Members of Congress outlining nine core principles necessary to promote electronic commerce, nearly all consistent with the principles outlined in the Magaziner report.

"The $100 billion in sales and 600,000 jobs achieved by the U.S. Software industry in 1996 will seem modest by the end of the century, providing we develop the full potential of electronic commerce," said Dr. Schmidt. "The Federal government can help us realize this opportunity by ensuring our industry and its customers of a free, fair marketplace in which market forces drive the development of the necessary new technology. By advancing these goals, the White House strategy paper helps create a policy climate in which the American software industry can expand our global leadership into the next-stage, networked economy."

The nine principles outlined by the BSA CEOs are:

• Effective intellectual property protection and enforcement are critical to facilitating electronic commerce.
• Governments should not impose import or export controls on encryption products or attempt to force use of government-mandated key-management infrastructures.
• No new federal or state taxes should be imposed on Internet transactions.
• Policy makers should rely on existing laws to address criminal activity on the Internet, and develop new laws cautiously.
• Technology-based filtering and rating systems are far more effective and flexible than sweeping regulation.
• Governments should promote competition and deregulation in all telecommunications markets.
• Market forces should drive the evolution of technology-based electronic payment systems.
• The Internet should be a free trade environment.
• Traditional freedom-of-contract principles should apply to e-commerce transactions.

"We look forward to working with the administration on encryption policies that are more in alignment with the realities of the business world," said Dr. Schmidt. "Together, we can find ways to maintain a level playing field for American companies, meet the security needs of customers, and expand U.S. leadership in software for electronic commerce. We're optimistic about enacting all nine of the principles outlined in our letter to the President."

The Business Software Alliance promotes the continued growth of the software industry through its international public policy, education, and enforcement programs in 65 countries throughout North America, Europe, Asia, and Latin America. BSA worldwide members include the leading publishers of software for personal computers and the Internet including Adobe Systems, Autodesk, Bentley Systems, Lotus Development, Microsoft, Novell, Symantec Corp., and SCO. BSA's Policy Council consists of these publishers and other leading computer technology companies including Apple Computer, Compaq, Digital Equipment Corp., IBM, Intel, and Sybase.

FOR ADDITIONAL INFORMATION
Diane Smiroldo
BSA
Phone: 202-530-5127
Internet: dianes@bsa.org

Austin Edgington
Novell, Inc.
Phone: 408-577-6213
Internet: aedgington@novell.com