Xerox Will License Computer Graphical Software to Metaphor

Xerox Will License Computer Graphical Software to Metaphor

Begins Industry-Wide Licensing Programs As Two Companies Settle Dispute

STAMFORD, Conn., May 23, 1989 -- PRNewswire -- Xerox Corporation (NYSE: XRX) will make available broad, new licensing arrangements for its graphical user interface computer software that simplifies the way users select programs, issue commands and perform various functions.

Xerox revealed this strategy for industry-wide licensing as it and privately-held Metaphor Computer Systems of Mountain View, Calif., announced the settlement of a suit between the two companies relating to intellectual property rights.

The settlement includes the signing of a licensing agreement which allows Metaphor, a supplier of data interpretations systems, to use all features of the Xerox interface, many of them not part of the original dispute.

The interface stems from work originally done by scientists at Xerox. An early version of that software was copyrighted in 1981.

William J. Spencer, Xerox research vice president, said that starting the industry licensing program recognizes the increasing importance in personal computing of the iconic, graphical techniques first developed by Xerox.

"We feel the agreement with Metaphor protects our intellectual property and we expect to license other software developers in a similar way," said Spencer. "We hope that initiating this approach will help advance the industry toward new user-friendly standards and will avoid needless litigation that could only delay its progress."

After a dispute developed between the two companies, Metaphor filed a suit in March in the Federal District court in San Jose, Calif. It included an assertion that Metaphor believes it did not infringe on the proprietary rights of Xerox in the appearance of its products.

"However, both companies wanted to settle the dispute amicably," David E. Liddle, Metaphor chairman, said. "During discussions, Xerox offered to license a broad range of technology that gives us access to the tremendous base of pioneering work Xerox has done in this area and provides us almost unlimited freedom in the design of future graphical user interface products."

Liddle said the industry licensing program "acknowledges and rewards the major contributions of Xerox research and development activities" in Palo Alto where he and others worked before founding Metaphor in 1982.

/CONTACT: Thomas C. Abbott of Xerox, 203-968-3378, or Carol Gilbaugh of Metaphor, 415-961-3600/

(XRX) CO: Xerox Corporation; Metaphor Computer Systems ST: Connecticut, California