SBC Donates Internet Security Technology To University Of Texas; University Research Could Advance Online Screening Technology To Combat Computer Viruses, Network Attacks

Business Wire, Feb 3, 2003

Business Editors & High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--Feb. 3, 2003

Value of Donated Patent Estimated at $7.3 Million

SBC Communications (NYSE:SBC) today announced a patent donation from its Intellectual Property organization, valued at approximately $7.3 million, to The University of Texas at Austin. The donated patent outlines two online virus screening methods that could be developed and utilized to reduce the likelihood of network security breaches.

The donation enables the university to conduct high-level research on the patented methodology and potentially commercialize the related technology through licensing agreements with third-party companies. This research has the potential to deliver viable new applications to assist in defense against computer viruses, worms and network violations.

The growing danger of viruses and network attacks was illustrated most recently on January 25, when a virus-like attack dubbed "slammer" quickly spread through unprotected servers, slowing overall Internet traffic and disrupting services in some areas of the world. This recent attack is considered by many experts to be one of the worst of its kind in the Internet's history. According to the CERT Coordination Center, an organization that documents security vulnerabilities, eighty-two thousand security vulnerabilities were reported in the year 2002 alone.

"We're extremely grateful for this valuable patent donation from SBC," said Juan Sanchez, vice president of research, University of Texas at Austin. "We will use the technology developed under the patent to improve our understanding of network security and to seed further research in this area of national importance in which we have an active research program."

SBC Technology Resources Inc. (TRI), the company's research and development subsidiary, currently collaborates with the university on other Internet security-related initiatives as part of the company's recently launched Internet Security and Assurance Center (IASC), a research test bed designed to uncover new and innovative ways to expand the scope and effectiveness of cyber-security technology.

"The University of Texas at Austin has an outstanding reputation for its state-of-the-art research facilities and dedicated students and faculty," said Harlie Frost, president, SBC Intellectual Property. "SBC is a strong advocate of innovation at the university level and we feel that this donation will have a positive impact in the field of network security research."

The donated patent was thoroughly evaluated by independent firm Intellectual Capital Management Group (ICMG), an Acorn Technologies company, and estimated to be worth $7.3 million. According to the Yankee Group, the global managed security market will increase from $140 million in 1999 to almost $1.7 billion in 2005.

The patent, owned by an SBC company since 1998, details two methods of online virus scanning and removal that could potentially reduce the number and severity of security breaches on a network. The first method involves network-based filtering of viruses and other harmful material through a service made available to telephone companies and Internet service providers (ISPs). The filter would allow network operators to remove potentially hazardous material from the network in a manner that would be effectively transparent to end users.

The second method involves the creation of a "Virtual Screening System" (VSS). When a user elects to download a program, the program is first installed on a network-based virtual model of the user's equipment and scanned for viruses or other undesirable effects. These are communicated to the end user, or if none are found, the "real" changes will be applied to the "real" system. Implementation of this concept will entail further research and development, as the technology required to create a VSS is not yet fully realized.

SBC's security research efforts complement and support the company's Internet security offerings for customers. The company's DataComm division offers business customers a full network security portfolio to integrate the design, delivery and management of security packages. Residential users who sign up for the new SBC Yahoo! DSL service receive security software at no extra charge.

SBC Intellectual Property was formed in June 2002 to actively manage the strong suite of intellectual properties held by the SBC family of companies, including its patent portfolio. As part of this effort, the organization will seek to encourage innovation at universities and other research facilities by donating some patents that offer potential for benefits that fall outside of SBC companies' telecommunications offerings.

SBC Communications Inc. (www.sbc.com) is one of the world's leading data, voice and Internet services providers. Through its world-class networks, SBC companies provide a full range of voice, data, networking and e-business services, as well as directory advertising and publishing. A Fortune 30 company, America's leading provider of high-speed DSL Internet Access services, and one of the nation's leading Internet Service Providers, SBC companies currently serve 58 million access lines nationwide. In addition, SBC companies own 60 percent of America's second-largest wireless company, Cingular Wireless, which serves more than 22 million wireless customers. Internationally, SBC companies have telecommunications investments in 25 countries.