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OFFICE!MEMORANDUM • STANFORD UNIVERSITY. OFFICE MEMORANDUM. STANFORD UNIVERSITY. OFFICE MEMORANDU M
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DATE , September 1, 1966
To Dean Heffner
FROM L. Earnest
SUBJECT, Computer Science Building Funds from ARPA
Last April, we s ent a l etter to ARPA (enclosed for your refe r ence) discussing the local space shortage and suggest ing an accelerated depreciation agreement for new construction . The reply (also enclosed) indicated sympathic willingness to submit our r equest to the usual bureaucratic processes . Subsequent inquiries indicate that the wheels are still turning .
Recently Bob Tayl or, who is taking over Ivan Sutherland ' s position in ARPA, i ndicated t hat he would like to receive fr om you a r equest for cons~tation on the pr obl em . He suggested that a copy of the request be sent to Charl es Herzfel d, Director of ARPA, pr esumably to call to his attention our continuing interest in solving the problem. Enclosed i s a draft of a possible note to Taylor, in case you would like to pursue the matter.
LDE/fst
cc: Herriot Langle McCarthy V
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COMPUTER SCJENCE DEPARTMENT
Mr. Robert Ta;ylor
STANFORD UNIVERSITY STANFORD. CALIFORNIA 94305
September 1, 1966
Director for In~ormation Processing Techniques
Advanced Research Projects AgencY The Pentagon Room 31)-200 Washington, D. C. 20301
Subj : Computer Science Building
Ref: (a) Letter from Professor John McCarthy (Stanford) to Dr. Ivan Sutherland (ARPA) dated April 22, 1966
Dear Mr. Ta;ylor:
Stanford University is planning to construct a new building for the Computer Science Department, including space for the Artificial Intelligence Proj ect • I understand that you have been made aware of the existing space problem and its temporary solution (Reference a).
Telephone: 4U·321·2300
We are currently seeking :funds for the new building and would like to discuss with you the possibility of making financial arrangements similar to those employed in the recent construction here of a building for materials science research, which is also sponsored by ARPA. I would welcome the oppo~tunity to discuss our plans with you on your next visit here.
Very truly yours,
H. Heffner Associate Provost for Research
cc: Charles Herzfeld, Director, ARPA Professor Herriot Professor McCarthy L. Earnest R. Langle
May 25 , 1966
MJ.' . A. T. Nbl;;en Manager Straza In,",u~trie.; 790 Greenfiel Drive El Cajon, California 92021
Dear ~1r . Ni I, n:
Enclo~el i~ your FI • • 1 with the k_yboar 'odes In!icnt~ i .
The 1'0' a 'C intcn' ej to 'epl' .lent 7 -bi t ASCII for the 10lfe 'cade hal'a't 'on ea 'h key, wh >OJvel' that 'ha:acter appea '~ in ASCII .
The jpe~ification for the keyboard is f1n~ . Enclo~el is a reVijl list of the bina y COdCl for the di"plny Pl'Oc~~SO' in-st,'uction 3. Tho 'evi led 0 ,c, a _ prefe 'abl~ to tho'! in ;e"tion 5. 1 of your ~pe !fiation b aU.le they make pOJJibb ~ -toin 'inplificationJ in p ogre ,ing fo' the PDP-6 . Only the bine 'y co ~~ in ~ -tion
'5 . 1 orc to bc modified -- the int"'"Pretation of the inJtructiono iJ unchang'~ .
We currently plan to purchase the banic ]isplay d~ltem under a governm~nt contract and to cover :lOme of the li play ('onJoles with grant fund:.; . Con3equcntly, 118 1-1OUld like to hav.'! both a firm pri ce quotation on a ii xiJplay ;yJt~m and a unit price for consolej . It is understooCl that thc unit prices Hill b" fi= only 1,ith reJpect to the six-consol~ Ydtcm.
I hope that the te~hnical pecifications an, price quotatim13 can be work •. out in a "eek or ~<10 so that contract negotiations 'an begin. We currently plan to talte delivery of our PDP-6 cO!llputer on 31 May 1966.
LDE/fst
Ve~'y truly your~,
L. D. Earnest Executive Officer of the Attificia1 Intelligence Project
Mr. A. T. Nielsen Straza Industries 790 'reenfie11 Drive El Cajon, California
Dear Mr. ,-Tiel,;en:
June 2;, 1966
We have receive'! your lette\' of 20 June 1966 quoting a nE!'tl price for the ix ,isplay console ,y .tem at~l95,927 . You ol'iginally offered to buill etlaentially the same uy,tem for tl19,270. While the 'e have been a few changed in the design since the orieinal prop09al, they clearly 10 not warrant a 60 percent pr1~e in~ 'ease . We are no longer interested in purcha ing displayJ from Straza InduRtries.
It L regrette that so mu.:h of your time and our.; ha3 been candumed in reaching thi con :lu ion.
LDE, fat
Very truly your~,
L. D. Earnest Executive Officer of the Artificial Intelligence Project
" STANFORD UNIVERSITY
STANFORD. CALIFORNIA 94305
COMPUTER SCIENCE DEPARTMENT August 23, 1966 Telepbone!
4".321·2300
Mr. R. WaJ.l.er Information International Inc. 1116l W. Pico Blvd. Los Angeles, California 90064
Subj: Intention to Purchase Displ~s
Dear Bob:
On behalf of the Stanford Artificial Intelligence Project, I am pleased to confirm our intention to purchase a displ~ system from. Information International Inc. provided that some residual uncertainties in your specifications of 3 August and 15 August 1966 can be resolved satisfactorily.
For your information, we received five proposals that were responsive to our RFP. Of these, your price was second lowest. On the basis of the performance parameters that you specified we ranked your proposed system third in performance.
There are a number of features that are discussed in our RFP that are not treated in your proposal. Most of these could have been handled by an explicit statement in the proposal that you would meet the requirements specified in the RFP. (It is noted that your proposal does not reference the RFP.) A better arrangement, I believe, would be to incorporate these features into a revised proposal. The specifics that we are particularly interested in are given below.
Character Set
The character set given in our RFP Addendum of 3 August should be annexed to the proposal. There should be a discussion of the actions to be taken in response to each of the control c~aracters (NULL, TAB, LINE FEED, etc.) similar to that given in the Addendum. The proposal should state that there are 7 character sizes and 7 brightness levels and should give the constraints on the range of both. There should be a reference to the control keys that we specified and a statement concerning the number of bits to be transferred to the computer for eaCh keystroke (presumably 10).
\
1. Instruction Set
We desire a complete set of displ~ instruction formats and descriptions. The origin of the display coordinate system should be specified (we do not care whether it is in the center or the lower left corner, just so we know). It should be stated that 2s complement arithmetic wii1 be used. We desire that the X and Y coordinates be given to·ll bits in the instructions rather than lO'as you specif,y.
2. Interrupts
It should be possible to obtain a computer interrupt whenever there is an overflow of the 11 bit position arithmetic. There should be a discussion of light pen interrupts. It should be possible to selectively mask all interrupts.
3. Phosphor
The CRT· phosphor to be used should either be specified or left as an option to be selected by us within a specified length of time.
4. Delivery
Where your proposal states that "Delivery ~ be made six (6) months after receipt of order," it is suggested that "~" be replaced by "will".
5. Construction, Power, and utilities
I suggest that your revised proposal incorporate boilerplate similar to the following.
5.1 The electronic portions of this System shall be constructed of solid-state circuit components and mounted on printed-wiring modular plug-in units wherever practical. The circuit boards shall be flame retardant·.
5.2 All equipment shall be so constructed and fabricated as to permit accessibility to any and all component parts for ease of maintenance and replacement - without disconnecting any external cables.
5.3 All construction and fabrication &hall be of the highest quality according to· electronic industry standards.
5.4 The System shall be completely assembled. Stanford shall in no w~ provide any equipment such as - but not limited to -ra~ks, cabinets, vacuum pumps, generators, power supplies, etc.
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5.5 All terminals, plugs, connectors, circuit wiring, etc., shall be uniquely labeled on the equipment and referenced to a set of system drawings.
5.6 Each subassembly of the System shall pass through a door opening which is 7 I high by 5 I wide. An estimate of the physical size, weight, and shape of the System shall be submitted with the proposal.
5.7 Adequate interlocks and safety devices shall be installed wherever necessary to ensure the safety of personnel and equipment. All such devices shall comply with published State of California Codes.
5.8 The operating line voltage for the System shall be taken' from commercially available power at Stanford. This power 'is ll7v/20Bv single phase of 208/44Ov, 4-wire Wye-connected three phase. The frequency is 60 cycles per second ± 2 cycles. The system shall operate over an input voltage fluctuation of ± 10 percent of nor.mal.
5.9 The System shall operate as specified within a room temperature range of +55 0 to + 100'T. A:n:y internal cooling . requirements shall be supplied by the seller.
5.10 Provisions shall be made to prevent improper destribution of air and improper cooling if one or more devices or modules are removed from the System for prolonged periods of time.
6. Reliability
Down time for any given displ~ console shall be defined as the time during which the console is not available for use because of either preventive or non-scheduled maintenance. Non-scheduled maintenance shall begin whenever the given displ~ console cannot meet the performance specified 'elsewhere in this document, provided the PDP-6 system is operating properly.
The system shall be designed and constructed so that the total down time for any given displ~ console does not exceed two hours for each forty hours of time that the system is in"use. The system will be in use on a 24 hours per day, 7 day week basis.
7. Special Requirements
7.1 The Seller shall install the system at Stanford.
7.2 The Sell~ shall instruct Stanford maintenance personnel, a max~um of 3 persons, in the logic, electronics and mechanics of the entire system.
7.3 The Seller shall supply five complete sets of instruction manuals, adequate for operation and maintenance and servicing of the equipment. The Seller shall also supply five complete sets of circuit schematics, logic drawings and mechanical drawings as are necessary for maintenance operation and repair and wiring diagrams for the entire system. One set shall be reproducible.
7.4 The Seller shall supply a complete Recommended Spare Parts List.
7 .5 The Seller shall supply and bear the cost of all spare parts prior to final acceptance.
8. Tests
Acceptance tests will be planned, programmed and executed by Stanford and will be designed to determine whether the system meets the specifications given above. Final acceptance of the system. shall occur when all of the displ~s have operated below the maximum allowable down time (5 percent each 40 hours) for a period of four consecutive weeks (28 days).
If at any time the display system is made available for acceptance testing and such testing is not begun within two weeks, then by implication the system is accepted.
Steve Russell and Dave Poole have some specific suggestions for the instruction set that they plan to discuss with you on Thrusday, 25 August. I hope that we can work out a firm specification and sign the contract within a couple of weeks.
WE/fst
Very truly yours,
L. D. Earnest· Executive Officer of the Artificial Intelligence Project
Lincoln Moses s Asseeiate BaSIl School of BDmBDitles and Sciences
AprU 18, 1966
BulldiDg program to house CO and the Artificial. Intelligence ~ect
I DOW have the space requirements of the Artificial Intelligence pro3$Ct and have added them to tbe requireD1mlts of the Depart ... ment. The attacl16d program ahoul.d replace the earlier ODe I senti J'OU tor the Department 0Dl3. Les Earnest, representing the A.lo pl'03ect, ead I are ready to discuss this as SOOft as J'OU CaD get the Plsardng Office to pui; someone OIl the pro3ect I)
&TLa pab Inels. OCI Go Forsytbe
Bo Fe18EDbeum J 0 McCe:rtby L. Barnest
Robert J c. Langle for
Computer Science Department
Building Program
For
Computer Science Department and Artificial Intelligence Project
No. of rooms sq. ft. Assignable sq. ft.
Computer Science Department
Executive Suite Executive Secretary Secretarial Assistant
Offices Faculty (detail next page) Faculty Secretarial Teaching Assistant Research Assistant Foreign Visitors Fellowship
Special Purpose Library
(6 Assts.) (18) (2) (12)
Conference Room Seminar/Lounge Secretarial Workroom Storage
Artificial Intelligence Project
Executive Suite Project Director Executive Officer Administrative Asst. Secretary Secretarial Assistant Storage
Offices Faculty Research Assoc. Programmer/Analyst Research Assistant Technician
Special Purpose Computer Laboratory Display Room Shop Shop Storage Conference
Total Building Project
Assuming 75i effeciency
(15)
1 240 1 200 1 100
12 180 4 140 3 100 3 140 6 180 1 180 4 180
1 1,000 1 400 1 1,000 1 300 1 150 Total, DEPARTMENT
1 240 1 200 1 140 1 140 1 100 1 100
4 180 5 140 5 140 5 180 2 120
1 1500 1 500 1 450 1 150 1 400
Total, Artificial
240 200 100 540
2,160 560 300 560
1,080 180 720 5,420
1,000 400
1,000 300 150 2,850
240 200 140 140 100 100 920
720 700 700 900 240 3,260
1500 500 450 150 400 3,000
Intelligence Project
assignable sq. ft.
gross sq. ft.
8,810
7,180
15,990
21,320
June 28, 1966
R. !.angle
L. D. Earnest
Summer Staff
The following ,;tudents are ,wrldng on the Artifici I Intelligence Proje<!t this summer. All are continuation except whel'e noted.
Barbara Huberman Fred Safier Don Kaplan Takayasu Ito Karl Pingle Dave Poole John Sauter Irwin Sobel (begin 13 June) Bil l Wichman (begin 20 June) Phil Petit Don 1Tatermnn Bill \~eiher Bob Doran Wilson HayeJ (M. E. , begin 20 June) Larry Leifer }eorge Powell(~I. E . , begin 23 June) Vic Scheinman Don Pieper (1~. E . - NSF fellow) Mike Kahan (~I . E . - NSF fellon)
o
L. D. Earnest Computer Science
Kathleen Butler Research Administration
Contract SD-183, Modification 6 (Stanford Artificial Intelligence Project )
July 6, 1966
We enclose a conformed copy of this fully executed modification to Professor McCarthy ' s ARPA contract .
This modification extends the contract for two years to 14 June 1968 . Additional funds of $1,402,801 are provided. The total estimated cost becomes $3,352,001 .
Note the following changes from the advance copy which you reviewed: Article VII provides for a predetermined overhead rate for the period beginning 15 June 1966, and General Provisions 2B, 36 and 37 have been deleted .
Enclosure
cc: ~ McCarthy Associate Provost for Research ~BR (w/enclosure)
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MEMORANDUM ",'
( ~ ,
Advanced Releareh Projects Agency'·
.... ,Dear Professor McCarthy:.
, Enclosed you will find a current list . of 'Advanc;ed Research Profects Agency' Contracts in Information Processing·. Techniques. Some of the. contract :" titles are only approximations in the , interest of brevity. The principal .. ~.
: investigators and addresses however:';::." . are accurate; please insure that this)~;·: list is a part of the distribution fo:r·;;'·;~:'·!<
.. ;yourARPA. eon~ra~t. . ::.~::;.::?,/. ~
' ......•. ;~:.:,,::i·~"(su~e BrbW'l.~~~h;· . ! , . 'ARPA/IPT :,';.~' ;'.: '.' ..
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ARPA CONTRACTS in
INFORMATION PROCESSING TEC:E-mIQUES
Contract
"Project GENIE"
"Computer Measurement Techniques"
Contractor
Dept. of Electrical Engineering 173 Cory Hall University of California Berkeley, Calif. 94720
Dept. of Electrical Engineering Univer sity of California Los Angeles, Calif. 90024
"Computer Augmentation Computing Laboratory of Computer Prograrnrning ll Stanford Research Institute
Menlo Park, Calif. 94025
"An Experimental Communications Laboratory"
"GRAIL Project ll
(graphics)
"Command-Research Project"
"Heuristic Programming & Theory of Computation II
"lliiac Illtl _ (Pattern Processing)"
"lliiac IV" (Parallel proces sing)
Dept. of Electrical Engineering University of California Santa Barbara, Calif. 93106
"Computer Sciences Dept. RAND Corporation 1700 Main Street Santa Monica, Calif. 90406
Technology Division System Development Corp. 2500 Colorado Avenue Santa Monica, Calif. 90406
Computation Center Stanford University Stanford, Calif. 94305
Dept. of Computer Scienc~s University of illinois Urbana, ill. 61803
Dept. of Computer Sciences University of illinois Urbana, ill. 61803
Principal Inve stigator
Dr. Paul Morton Dr. Harry Huskey
Prof. Gerald Estrin
Dr. D. C. Engelbart
Dr. Glen Culler
Mr. Keith Uncapher
Mr. Jules Schwartz
Prof. John"McCarthy
Dr. Bruce H. McCormic~
Dr. Daniel Slotnick
I
--,,- *'
INFORMATION PROCESSING TECHNIQUES (cont'd) (ARPA Contracts in)
Contract
"Natural COmnlunication with Computers"
"Project MAC" (Machine -Aided Cognition)
"Project Intrex" (library console design)
"Language Development. for the Reactive Typewriter"
"Graphic Control and Display of Computer Processes"
"Text Editing"
"Conversational Use of Computers"
"Macromodular Computer Systems"
"CRT-Aided Semi-Automated Mathematic s"
"A Very Large Memory Facility"
Contractor
Bolt, Beranek & Newman 50 Moulton Street Cambridge, Mass. 02138
Project MAC Massachusetts Inst. of Tech. 801A Technology Square Cambridge, Mass. 02139
Dept. of Electrical Engineering Massachusetts Inst. of Tech. Cambridge, Mass. 02139
Rockford Research Inst., Inc. 140 1/2 Mt. Auburn Street Cambridge, Mass. 02138
Massachusetts Inst. of Tech. Lincoln Laboratory Lexington, Mass. 02173
Inforonic s, Inc. 146 Main Street Maynard, Mass. 01754
Dept. of Industrial Engineering University of Michigan Ann Arbor, Mich. 48104
Computation Sciences Washington University 700 S. Euclid Avenue St. Louis, Mo. 63110
Applied Logic Corporation . 70 Nas sau Street Princeton, N~ J. 08540
T. S. Watson Research Center International Business Machines P. O. Box 218 Yorktown Heights, N. Y. 10598
- 2 -
Principal Investigator
Dr. Daniel Bobrow
Prof. Robert M. Fano
Dr.' Carl Overhage
Mr. Calvin N. Mooers President
Dr. Frederick C. :frick Head, Data Systems Div.
. Mr. Larry Buckla:q.d
Prof. Bertram Herzog Dr. F. H. Westervelt
Mr. Wesley A. Clark Mr. William. N. Papian
Dr. James R. Guard Vice President
Dr. Paul S. Herwitz
INFORMATION PROCESSING TECHNIQUES (cont'd) (ARPA Contracts in)
Contract
"Research in Information Processing"
"Graphical Man-Machine Communication"
Contractor
Computation Center Carnegie Inst. of Technology: Schenley Park Pittsburgh, Pa. 15213
Dept. of Electrical Engineering University of Utah Salt Lake City, Utah 84112
- 3 -
-~ ~-----------~---. ~
Principal Investigator
Prof. Alan J. Perlis Prof. Allen Newell
Dr. David C. Evans
QFFICE MEMORANDUM • STANFORD UNIVERSITY • OFFICE MEMORANDUM • STANFORD UNIVERSITY • OFFICE MEMORANDUM
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To
FROM
SUBJECT:
JS-
DATE: October 11, 1965
Professor McCarthy
Mr. Kirk
PURCHASE OF DATA CELL FROM IBM
You asked my opJ.nJ.on whether IBM may be in violation of its Consent Decree in declining to promise delivery of a 2321 data cell until April of 1967. As I understand it, IBM made a proposal to supply the University with a 360 System, Model 50, which would have included as a component part a 2321 data cell. The suggested installation date, as set forth in the IBM proposal for the Model 50, was February of 1966. The University has now decided to purchase a model manufactured by PDP but would still like to purchase an IBM 2321 data cell. IBM now says the 2321 data cell will not be available until 1967.
I have reviewed the Consent Decree which you left with me and also the IBM proposal. (Incidentally, this Consent Decree has been modified once by a decree entered July 14, 1963 in the United States District Court for the Southern District of New York. Enclosed is a copy of this decree. I find nothing therein relevant to the instant inquiry.) Based upon the language in Article XV, subparagraph (b), of the Decree, it appears at least possible that IBM may be in violation of the Decree by deferring delivery of the data cell because of the failure of the UniverSity to order the Model 50. Of course, I do not know whether, had the University ordered the Model 50, it would have received delivery by February of 1966. The proposal suggests installation by February of 1966 but is not a legal commitment to make delivery by that time. Possibly, even had the University ordered the Model 50, delivery would not have been made until April of 1967.
If it could be established that IBM will promise delivery of 2321 data cells as of February of 1966 to any purchaser of the Model 50 but will not promise delivery of 2321 data cells until April of 1967 to those who only wish to purchase the data cell, it could, I believe, be argued that IBM is in violation of the above cited portion of the Consent Decree. However, this would not necessarily be the case as the court might permit IBM to give earlier delivery to those who purchase an entire System over those who only purchase a component part.
In short, I am afraid I cannot give you an unequivocal answer to your question. However, I see no reason why, in the conduct of negotiations with IBM, you might not take the position that IBM cannot discriminate as to delivery date in favor
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~Jemorandum -t o Professor McCarthy October 11, 1965 Page 2
of -those who buy an entire System . \\The t her such a position shoul d be t aken is, of course, a policy decision t o be con sidered in connection ,.it h your over-all bargaining strategy .
I am returning t he copy of the Consent Decree which you left wi"th me and -the IBM proposal.
CLK/ mwh AU .
Cassius L . Kirk, Jr. St aff Counsel, Business Affairs
.. ,
OFFICE MEMORANDUM. STANFORD UNIVERSITY • OFFICE MEMORANDUM • Sf ANFORD UNIVERSITY J OFF~CE MEMORANDUM
A.:r OtC!v}'LC~~ • )f6 6 ~
DATE: January 25, 1966
To Dave Reeves, George Mickel, Steve Russell, Bob Langle, John McCarthy~
FROM L. D. Earnest
SUBJfCT: PDP-6 System Cost
A quick look through DEC's latest (January 20) approximation to a price list for our PDP-6 reveals the following differences from the original contract.
1) Notice is taken of the arithmetic error in adding the items listed in the contract. Instead of $447,972 the total should have been $490,772, an increase of $42,750. Since this appears to be an honest error that both parties should have caught, I think we should cover it.
2) The prices of the following items are increased in the new List I, as shown.
Contract New ~ T;me No. Description Qty Price Price Increase
6 187 Memory Interface 4 7,640 8,640 1,000
7a 633R Flag Scanner 1 1,000 . 8,000 7,000
13 165A,E Camp. Intercommunication 1 15,160 20,000 5,040 System
DEC gives no reason or justification for these changes and I see no reason why we
should pay the increase.
3) The prices of the follOWing items are decreased in the new listing, as shown. ContTact New
Item T:lI2e No. Description ~ Price Price Decrease
7b 632F Send-Receive Group 1 1,500 1,200 300
7c 63lA Data Line Interface 1 750 600 150*
7d 635A Line Power Supply 1 500 400 100*
7e 4706 Module 8 2,080 1,664 416
7f 47C17 Module 8 2,200 1,760 440
7g Send Relays 8 336 269 67*
7h Receive Relays 8 336 269 67*
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Since we agreed in the contract to pay the larger prices, I see no baRis for our expecting a reduction on these items. It should be noted that we have since dec-ided (and told DEC) that we do not want the items above that are marked on the right with an asterisk, so that these "price reductions" are of no consequence.
3) DECts new List II supposedly reflect.s the changes we have asked for. In. fnct, howevp.r, Item 6 lists twice as many Memory Interface units as the contract, at more than twice the price. This change was not requested by us and I see no reason why we should pay for it. DEC initiated this change and we agreed to it on the basis that the price would not change.
4) The other additions and deletions on List II seem to be in order. Items 19 and 20 (low order 2 bit interleaving) seem rather high for such a simple modification, but we have no firm basis for argument.
Returning to the original contract, I believe the price should be adjusted as follows.
LDE/fst
Contract price (corrected) Delete 631A, 635A, Data Set Inter
face, Send Relays, and Receive Relays
Add items 16-21 from new List II
New Total
$490,722.00
4,322.00 15,065.00
$501,465.00 .
OFFICE MEMORANDUM. STANFORD UNIVERSITY • OFFICE MEMORANDUM • STANFORD UNIVERSITY • OFFICE MEMORANDUM
DATE: January 25, 1966
To Dave Reeves, George Mickel, steve Russell, Bob Lang1e, John McCarthy
FROM L; D. Earnest
SUBJECT: PDP-6 System Cost
A quick look through DEC's latest (January 20) approximation to a price list for our PDP-6 reveals the following differences from the original contract.
1) Notice is taken of the arithmetic error in adding the items listed in the contract. Instead of $447,972 the total should have been $490,772, an increase of $42,750. Since this appears to be an honest error that both parties should have caught, I think we should cover it.
2) The prices of the following items are increased in the new List I, as shown.
Contract New Item T~e No. DescriEtion Qty Price Price Increase
6 187 Memory Interface 4 7,640 8,640 1,000
7a 633R Flag Scanner 1 1,000 . 8,000 7,000
13 l65A,E Camp_ Intercommunication 1 15,160 20,000 5,040 System
DEC gives no reason or justification for these changes and I see no reason why we
should pay the increase.
3) . The prices of the following items are decreased in the new listing, as shown. Contract New
Item T~e No. Descri12tion ~ Price Price Decrease
7b 632F Send-Receive Group 1 1,500 1,200 300
7c 63lA Data Line Interface 1 750 600 150*
7d 635A Line Power Supply 1 500 400 100*
7e 4706 Module 8 2,080 1,664 416
7f 47C17 Module 8 2,200 1,760 440
7g Send Relays 8 336 269 67*
7h Receive Relays 8 336 269 67*
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Since we ar,reed in the contrnct to pay the larger prices, I S0e no basir. for ollr expecting a reduction on these i terns. It should be noted that \ole have since nnclded (and told DEC) that we do not want the items above that are marker] on the ri~ht with an asterisk, so that these "price reductions" are of no cons~(PJ~nc~.
3) DEC's new List II supposedly reflects the changes we have aske rl for. In fact, however, Item 6 lists twice as many Memory Interface units as the contract, at more than twice the price. This change was not requested by us and I see no reason why we should pay for it. DEC initiated this change and we agreed to it on t~he basis that the price would not change.
4) TIle other additions and deletions on List II seem to be in ord~r. Items 19 and 20 (low order 2 bit interleaving) seem rather high for such a simple modification, but we have no firm basis for argument.
Returning to the original contract, I believe the price should be adjusted as follows.
LDE/fst
Contract price (corrected) Delete 63lA, 635A, Data Set Inter
face, Send Relays, and Receive Relays
Add items 16-21 from new List II
New Total
$'~90, 722.00
4,322.00 15,065.00
$501,465.00
OFFICE MEMORANDUM • STANFORD UNIVERSITY • OFFICE MEMORANDUM • STANFORD UNIVERSITY • OFFICE MEMORA . .,DUM !Uf-.:..
, /.A .JIYI
To
FROM
SUBJECT:
DATE: January 25, 1966
Dave Reeves, George Mickel, Steve Russell, Bob Langle, John McCarthy
L. D. Earnest
PDP-6 System Cost
A quick look through DEC's latest (January 20) approximation to a price list for our PDP-6 reveals the following differences from the original contract.
1) Notice is taken of the arithmetic error in adding the items listed in the contract. Instead of $447,972 the total should have been $490,772, an increase of $42,750. Since this appears to be an honest error that both parties should have caught, I think we should cover it.
2) The prices of the following items are increased in the new List I, as shown.
Contract New -
Item TlEe No. DescriEtion Qty Price Price Increase
6 187 Memory Interface l~ 7,640 8,640 1,000
7a 633R Flag Scanner 1 1,000 . 8,000 7,000
13 165A,E Comp. Intercommunication 1 15,160 20,000 5,040 System
DEC gives no reason or justification for these changes and I see no reason why we
should pay the increase.
3) The prices of the following items are decreased in the new listing, as shown. Contract New
Item TyPe No. Description ~ Price Price Decrease
7b 632F Send-Receive Group 1 1,500 1,200 300
7c 63lA Data Line Interface 1 750 600 150*
7d 635A Line Power Supply 1 500 400 100*
7e 4706 Module 8 2,080 1,664 416
7f 47(17 Module 8 2,200 1,760 440
7g Send Relays 8 336 269 67*
7h Receive Relays 8 336 269 67*
.... ~ z "'" o ",
tJ
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Since we agreed in the contrfict to pay the larger prices, I S0e no basir; for f."'llr expect.ing a refluction on these items. It should be noted that we hJ.lve since dec:tdeo (ann told DEC) that ,,'e do not want the items above that are marked on the right with an asterisk, so that these "price reductions" are of no ~on8~quence.
3) nI~C's new List II supposenly refle~ts the changes we have askp.fl for. In fact-., hm.,rcver, Item 6 lists twice as many Memory Interface units as the contract, R t more thnn t,.,rice the price. This change vIas not requested by us and I see no reason why we should pay for it. DEC initiated this change and we agreed to it on t.he basis that the price would not change.
h) The other additions and deletions on List II seem to be in ord~r. Items 19 nnd 20 (low order 2 bit interleaving) seem rather high for such a simple modification, but we have no firm basis for argument.
Returning to the original contra.ct, I believe the price should be adjusted as follows.
LDE/fst
Contract price (corrected) Delete 631A, 635A, Data Set Inter
face, Send Relays, and Receive Relays
Add items 16-21 from new List II
New Total
$490,722.00
I ... ,322.00 15,065.00
$501,465.00
October 18, 1965
Commending Officer Sen Francisco Procurement District 1515 C1~ Street Oakland, CaJ.ifornia
Dear Sir:
Be: Approval. to purchase a L.~-.2~ter with contract SD-18.3 funds.
Modifications one and tuo to the above identified contra.ct should, by this time, be finall,y executed; end Stanford University, therefore, l'equests specific approval to place its purchase order for a PDP-6 computer manufactured by' the D1gi tal Equipment Corporation.
Modification one provides the funds for the expansion.-1ncluding the purche.se of the PDP-6. Modification tl>1O, dated 4 August 1965, transferred the responsibility for the e.dministret1on of this contract from Defense Supply Serviae --Washington to your command.
Before selecting the PDP-6 as the most appropl"ia.te computer for the Teseo.rch being conducted under this contract, Requests for Proposals (Ene. 1) l'rel"e sent to: Control Data Corporation, Dig! tal Equipment Corporation, General Electric Corporation" Honeyt-rell, IBM, RCA, Scientific Data Systems, Sperry Rand, and Burroughs Corporation. Proposals lrere rece! ved from Control Data, Dig! tal Equipment, General Electric, and IBM.
~ the opinion of Professor McCartby' and bis staff the Digital Equipment Corporation's proposal. for a PDP-6 configuration is the best suited :ror this research project. This deciSion was discussed lnth Dr. Ivan Sutherland, the Scientific Officer in ARPA'tdlo monitors the project. The initial. configurations for which approval is being requested at this time~: is:
Description Type lio. Qty.
P.ri thmetic ProceSSOl' 166 1 Core Memory 65K
175J.1sec 164c 1 '. ':-', ]Fast Nemory 162 1
Disk System *' Data Contro~ 1,36 2 DECtape Con~-ol 551 1 DEGtape Du.e.l Transport 555 4 Line Printer * 1 Multiple Computer Interchange 165 1 PDP-a Data Communication System PDP-SA 1 Data Cell ~rface '* 1 Memory BuB Interface 187 2
*The exact model tn>e is being negotiated ,,11th DEC.
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Commending Officer San Francisco Procurement District October 18, 1965 Page -2-
The quotation for this configura.tion, for whioh approval is re~sted at this time, is $669,118. This is within the costs estimated in the Stanford proposaJ. to ARPA.
Also enclosed are the DIPEC clearance forms (Ene. 3) which 't~e submitted through Defense Supply-Washington (Ene. 2) but were returned to us because sections three and four were not completed by the WashiDgton office. We note that prel~ar.v screening has been completed and the items re~ested are not available.
If' the research is Dot to be impeded it is urgent tha.t we rece! ve this approval. as ~ckly as possible. The manufacturer has proceeded as far as he could reasonablY be expected to on the basis of the University's letter of intent; but he can not complete the assembly until he receives the purchase order.. Digital Equipment Corporation needs to receive the purchase order within a week if we are to expect deli very by December.
RJL:st1S anc. ~
cc: Prof'. McCarthy V Dr. Heebink
Yours very t~,
Robert J. Langle Associate Director
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Commanding Officer, San Francisco Procurement District, 1515 Clay Street , Oakland , California
Re Contract SD-183. Request permission to execute Subcont ract S-187 with Information International of Los Angeles for the acquisition of approximately 200 hours of top technical effort for a study and report on alternate forms of computer eye at a $5000 fixed price . Stanford has examined their cost and fee proposal and has found such reasonable. Agreement would incorporate all public contract provisions required by referenced prime. Approval via return wire would be appreciated.
bcc: ~ "McCarthy R. tangle G. Mickel
Robert B. Kennedy Contract Administrator Stanford University
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October 8, 1965
David B. Heebink, Research Administrator Controller's Office
Robert J. Langle Computation Center
Subcontract I-71th Information lnternaj;ional for preliminary study on alternate forms of computer eye for SD-183
One aspect of the expanded Artificial Intelligence project, SD-183, is to develop an "eye" "hich ,vill be unde:' the control of a computer. It is expected that the ultimate development cost of such an "eye" ,vill be between $75,000 and ~200,OOO ( see page 6 of our March 1, 1965, proposal to ARPA) .
Before the project determines ",hich eye ,vill be most appropriate, it ,71shes a study to be conducted by an outside group . Professor McCarthy has held prel iminary discussions ,71th potential groups and has decided that Information International would be the most competent, They have estimated that such a study could be made on a time and material basi s ,,71th an upper limit of 05,000 . In a discussion I hnve had ,vith a Hr. Tagner of Information International, I learned that their current audited indirect cost rate is 135% of salaries . The indirect costs Hill be included under the ceiling of $5,000.
Specifically Ire \V'ant Information International to study and report on alternate forms of computer eye. The report should cover the folloHtng forms of eye:
1 . ITT image dissector uith or without intensifier .
2 . An eye based on the tube proposed by RCA. Copies of the RCA proposal have been supplied to Information International .
3 • An eye based on a standard col or TV system reading into core .
In each case the report should discuss the fol101-71ng: senSitivity, resolution Si N, means of getting color information, means of scanning the room, connection to PDP-6 computer, cost and delivery time of system.
Professor McCarthy has emphasized that each of the systems should be covered and none rejected out of hand since the project staff "ill make its own deciSions after the facts are in.
It is hoped that the study can be completed by December 1, 1965; alt hough same t ime has elasped since the preliminary negotiations, I indicated to them that there should not be any difficulty and they have continued the study on my verbal authorization.
Information International is located at 11161 Pico Blvd., Los Angeles, 90064 . Al Fenaughty is the technical man in ehurge of the study. Any contract negotiations arc to be conducted ,71th Mr. Tagnar . If you ,-71sh to telephone him about contractual detail s, his number is 213 478-2571.
RJL : SlfS Associate Director cc : Prof . McCarthy "'--
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REMARK S
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DEPARTMENT OF THE ARMY
DlPlNIl IU"LY .. aVltl-WASHINGTON
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, '" ':' " There is -'inct'osed Change Order No , ' 2 ,to Contract :: :' 'entered into ,by ,. thiS '<;>ffice with 'you)." organization .
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(OR ADMBVl~rRATlV.B.cHANGg) .. 1 1 "&QU"ITION .NO./PURCHASE AUTHO.UT:Y CONTRACT (O,de,) NO. MODIPICATION NO.
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: B':'8 rd of Tro G tees of the Le land Stanford Junior University
.~ Stanford, California I ~/!
.Defense Supply Servioe.vlashington Room l~ 245, The Pentagon Washington :I~ D. c. 20310
CJ PU.UUANT TO THE .. CHANG .... C"'AUSE 01' .THE.ABovaoNUMDERED CONTRACT, THE PO .... OWING CHANGES AR& ~AD& TH&"&IN,
. ;:' [II TNa A80ya·NUW8aRaD CONT~ACT 18 MODI.".D TO Ra" .. KCT THS "01.1.0"INO ADM'NI8TRAT~Y. CHANO... '. . . . . ~
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.. 1. Effective' 4 August1965,' the responsibility for the administration of this cortract,. ~s transferred :to . San Francisco Procuremen't Di~trict', u. S. Army.
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: ·2 •. ' .All corresPond.ence, including requests for Inspection Services., relative to: <. this contract shall, .on and after 4 August .1965, be dir,ected to the following' ., ..... address: . , ,\~" , . . . '... . ..... :: :'.:~:',.'
'. ; .' :.. . '. .... .. :.; ·Cominarlding Officer ..
· San Francisco Procurement District, U. S.· Army '1515 Clay Street ,. Oakland, California 94604
3. Public' voucher requests for reimbursement of costs should be prepared and submitted to the Administrative Contracting Officer at the'aboveaddress'for his approval ; for transmittal to the Disbursing Officer for payment. ". Payment under this contract has been changed to: .. .. .:' \ .~'. '.,> .' . .. . ... " '. .'
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',' expeds'tious handling wl11 insure timely and uninterrupt~d payment services •. : '. , ,
',' . Except'as hereby modified, all.terms and conditions of sald contract as heretofore 'modified remaill unchanged aDd in full force and effect. . .'... .
4 August 1965 .',
.1 DATE
TYPED NAME OP CONTRACTING OPPICER
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DEPARTMENT OF THE NAVY OFFICE OF NAVAL RESEARCH
BRANCH OFFICE
1076 MISSION STREET
SAN FRANCISCO. CALIFORNIA 94103 IN REPLY REFER TO:
TEt:.EPHONE: 621·3828
Professor John MCCarthy Computation Center Stanford University Stanford, California
ONR:SF!MFK:Ml 3930/l!SD-183 Serial CA-525 15 Dec 1965
This "Till advise that Mr. James R. King, the Office of Naval Research Resident Representative, has been assigned administrative cognizance of Contract SD-183.
Questions relative to the contract should be referred to this office, or to Mr. King who will contact you from time to time and may be reached at the Varian Laboratory of Physics, Stanford; University.
Sincerely yours,
\~trI/vYv+vn A7r!"fllV~-. ~BERT M. FmCHER Head, Contract Administration By direction of the Commanding Officer
Copy to: ResRep, Stanford
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TELEPHONE: 621·3628
DEPARTMENT OF THE NAVY OFFICE OF NAVAL RESEARCH
BRANCH OFFICE
1076 M ISSION STREET
SAN FRANCISCO. CALIFORNIA 94103
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IN REPLY REFER TO: o :.-1 ~9.P1-:..1,J .. -l",3
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Question:; rclat1ro to "be COllt=c 0 tic • or fr. -in,:; Wo ':ill contact you rall t1J;le to t· be recc' at c Vnr1o.11 LabOl to17 of Pllys1c~. tord Un.lvcrslt- •
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STANFORD UNIVERSITY STANFORD. CALIFORNIA 9430,
COMPUTATION CENTER
Mr. George E. Berry Defense Supply Service Department of the Army Roam I-D 245 The Pentagon Washington, D. C., 20310
Dear Mr. Berry:
August il, ~965
To assist you in obtaining DIPEC clearance for the capital equipment we need to procure to perform the research contemplated in the. expanded ARPA contract SD-183, we shall initiate DD form 1419 as the vendors of certain components are selected. The Digital Equipment Corporation has been selected as the vendor for the main computer configuration (DEC I s PDP-6) and the 1419 form. should reach you in a day or two.
It is our understanding though that the several DIPEC clearances do not have to be obtained before the contractural agreements for the amendment are completed. We realize that we cannot commit ARPA funds before getting such clearance; and we intend to submit requests for approval all additional components of the complete configuration. As I stated above the PDP-6 computer has been selected by Professor McCarthy; we have sent out request for proposals for the display system, and we are asking IBM for quotations on the delivery of a data cell.
I would like to reiterate the need for urgency in completing the contract amendment. To insure that the progress of the research being performed under this contract is continued without interruption we must have the PDP-6 computer here by December; and as the manufacturer can start assembling the modules only after it receives at least a letter of intent, Stanford University has written such a letter to Digital Equipment Corporation. This letter of intent, however, must be followed with a bona fide purchase order within thirty days, which. means that we must have the contract amendment comp~eted by the end of August. .
AreJ Code: 41,
Phone: DA 1-1]00
El:teDsion 289'
continued •••••
Mr. George E. Berry August 11, 1965 Page 2
When we knew that ARPA would support this expanded project in the field.of Artificial Intelligence, a "Request for Proposals for A Computer System to be Used by the Artificial Intelligence Project" was prepared by the technical staff working at Professor McCarthy's, Principal Investigator, direction. This RFP enumerated the considerations that would govern the selection of the computer. Since this computer was to be used for a special research activity certain -features were mandatory. It might be well to mention at this point that present day computer systems are modular and that the computer system can be built to the unique needs of the user.
The RFP mentioned above was sent to the following computer manufacturers: Burroughs Corporation, Control Data Corporation, Digital Equipment Corporation, General Electric Corporation, Honeywell, IBM, RCA, Scientific Data Systems, and Sperry Rand. Proposals were received from Control Data Corporation, Digital Equipment Corporation, General Electric Corporation, and IBM. -
In the opinion of Professor McCarthy and his senior staff the Digital Equipment Corporation's proposal for a PDP-6 configuration was the best suited for this research project. This decision was discussed with Dr. Ivan Sutherland the Scientific Officer in ARPA who monitors the project. ·The following modules are listed in our letter of intent to DEC for the P.Dp-6:
Description Type No. Qty.
Arithmetic Processor 166 1 Core Memory 65K
l75~sec l64c 1 Fast Memory 162 1 Disk System * Data Control 136 2 DECtape Control 551 1 DECtape Dual Transport 555 4 Line Printer * 1 MUltiple Computer Interchange 165 1 PDP-8 Data Communication System PDP-SA 1 Data Cell Interface * 1 Memory Bus Interface 187 2
* The exact model type is being megotiated with DEC.
continued •••••
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Mr. George E. Berry August 11, 1965 Page 3
The Digital Equipment Corporation's quotation in its proposal is within the costs estimated in the Stanford proposal to ARPA, and Professor McCarthy will be able to conduct the research within the total budget .
I believe this additional material supplies the information you needed to complete the contract amendment.
RJL:lel cc: J. McCarthy
D. Heebink
bcc : G.E E .A . R.W
For sythe Fe igenba um Tayl or
Yours very truly,
Robert J. Langle Associate Director
neoeareh Albninistr tion Controlle." I 3 Off'icc
Computer Science Departoent
Renewal proposal. 1'01' I>:RPA contrv.ct SD-l83
I;ovQ!ll.ber 12, ~965
Ene~oocd (u'o cleven copiec 0 our pI'OpO~tl oqucctiIl{; ,tl70-yelli: c.ncnsion 1'1'001 June 14, 1966. This Pl'OJCCt wac EtCL~cd in June, 196} at an onnual. level of 140,000. During the current (third) ye ", I!RPA Q.'\.1lended ito support t1ppTO:dn tely " 1,500,000 ,,0 olU'ble the p:!ojoct to purchnse n COC'lpUtOl' :-nd ~'oluted hnl'<hllll.'e 'nd ~nd tho r~l'Gonnel to develop cn £-rti:!.'ici!!.l. "he.ru1" end on "eye". OUJ." present request io 'for =J?O-t of the c:. ndcd project o.t ,. level of ,.1,196,13::6 tho firct yeor Uld ~,139 the ceeoml yell:'. Tho fir:;t ye IS budGet includes ~"50J ooo •. dditionol core mcmo.y for the PDP-6.
The budget nl.50 includcG n line It of .. 50,CXX> for spece x'cotcl.. Ie do not know whnt AnPA':; reaction '/ill be; but ue do knoll thet there
:I,G precedence for its pcyin,:; rent. A .. you lmOl', .Ie hope to activate npprcr.dznBtcly 8 ,.500 tq. ft. of ~ce in the Gcnert'l Telephone builr1illC for the project IS OCCUL r llCY fo~' the no..ct; I;uo o. th:'ce yecrG. Pl'eflu:.J,~bly, 'Ie 'rill be able to make dil'oct charc;es to the c·;,nt.:c.ct for tho wor requil'ed to e_ er-te B suitobl~ cnvi:'Ollr.lCllt 'or the cOl!!V1ter ond the "hondQ
"eye" I but th . 'C will be some inn:ppr01Jrinte eootll, f'-nd it is expected th-t the project "ill evcntu l1y rove into n-" 3pC.Co close to the Computation Centor. It r:Jry be VO:lOiblc to fund COCIC of this neH cpl'ee by I'ent clw~'Gc to this project.
PIO!'Ollllor Fo~'aythc, Heed of the Computer :::c1enoo Jk!par1;tlCnt, ';'s mmre of the contiml tion of thiG project end hac ~ovcd it.
Ibbert J. L<~
RJL:m.l0 cc vlth enc1.: Don Price
Bob .o!lCIl...";;eig
cc vithout cnc1.: Johu I:CC~rtb3 /
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Robert B. Kennedy Research Administration
Subcontract 8-187 under Pr~e Contract Sn·183
28 October 1965
We have executed the subject agreement with I~ormation International. Inc •• and attach a copy for your use. This subcontract is for a feiSibility study on forms of computer eye.
By means of this agreement funds under the pr~e are committed in the sum of $5,000. The te~ of the subcontract is 19 October 1965 to 15 December 1965.
Enel
cc: ~ McCarthy G. Mickel PBR (w/enc1)
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AGREEMENT
This Agreement is entered into on the aignaturecciate below noted, between Information International, Inc. (Seller). and Stanford University (User).
Witnesseth
Seller regularly offers its equipment. services and facUities to qualified users who desire to perform automatic scientific fUm reading. Those facilities are offered at published hourly rates,
. however, Seller recognizes the need to encourage the use of auto· matic fUm reading techniques by offering lower rates to educational institutions who are conducting research and development work •
. ~ Therefore in consideration of the above objective, User makes the following agreement and certification:
l) . That User is a bona fide educational institution.
2) That User understands it is receiving a special rate.
3) That the work is being accomplished under its auspices and with its knowledge.
4) That any procedures, techniques, computer programs, or the like, developed in conjunction with work being done under educational rates, will be made available to Seller.
5) That copies of program tapes and documentation generated in performance of work under reduced rates wilfbe supplied to the Seller.
6) That User will promptly notify Seller of any changes which would render UseI' ineligible for the educational rate.
~ Witness Whereof the parties have affixed their hands.
Inc. User
by
Date Date
PlannIng Office October 27, 1965
OFFICE RECORD
Re: General Telephone BuildIng - Computer Sciences
A request from Jim Thurber relayed by Owlght Adams on October 26 has been received for assistance In choosIng and designing space In the General Telephone Building for Computer Sciences.
The general Idea Is to establ Ish a computer and related activity to work on a project called ArtifIcial Intelligence. (This Is the same project for which space ~ In Clinical Sciences was considered.) This would be an Interim location (thought to be three years) until additions are made at the ComputatIon Center.
Federal money for the scIence pr.oJect Is assured but not actually In hand. It Is be) leved that this money will pay for some of the essentials In connection with the equipment such as the special fJoor, but It Is expected that some additIonal funds will have to be found for construction work.
From twenty to thirty-five people will be engaged In this program. I met with Bob Lengle at the site and Inspected two areas at the westerly end. These arevon the main floor and the level below It. The lower level Is presently assigned to Engineering, the upper Is unassigned. Both will require finishing and the Installation of air conditIoning (fifty tons).
PlannIng Is asked to assist In choosing between the locations and recommend ways in which work can be completed In time for January occupancy.
Action:
Bob Langle will furnish a relationship of function diagram.
Planning will Investigate the general space characteristics.
~ After development of further detail on use requirements, Planning_will recommend If) a procedu re for, accomp I Is Ivnent •
(yi~RHTYSOn : sam . j cc: Hr. Langle
Mr. Thurber \ Hr. Adams ! I
OFFICE MEMORANDUM. STANFORD UNIVERSITY • OFFICE MEMORANDUM • STANFORD UNIVERSITY • OFFICE MEMORANDUM I · \
To
FROM
SUBJECT:
R. J. Langle Computation Center
Robert B. Kennedy Research Administration
Subcontract S-187 under Prime Contract SD-183
DATE: 28 October 1965
We have executed the subject agreement with Information International, Inc., and attach a copy for your use. This subcontract is for a feasibility study on forms of computer eye.
By means of this agreement funds under the prime are committed in the sum of $5,000. The term of the subcontract is 19 October 1965 to 15 December 1965.
Enc1
cc: J. McCarthy G. Mickel PBR (w/enc1)
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. ,': :.1.{:~·;~ ~;\'~':"::.~::, .. between The Board of Trustees of The Leland Stanford Junior ~niversity, '.~/.~/:: .. :.'::~~::' .. : ;'.:. ':'~~:J}\.:::~:,.~):~\'::\~}" hereinafter referred to as STANFORD J and· Information International, Inc. ," .~',,: i\~:':.:::.:·::; ~~;<: '.; \',!'~::'<·:.:.:i ':\.:;' hereinafter referred to as III, .. : .. ~/ ...... ::-: . .': )': ~:;':: ::}":~:';';':;::' . . .... : :':<~ ~·.f: J ... .•...•. :;.\.~~:;:,:. ?"~ .•. ';. WIT N E SSE T H ~'."" r.:-:l.;··i:'.~; ,': . . ' /:~o-::~;;:::~~~~';t ;\!z:~.~: . 4 • :.~~ ;:.:;~:;(\::~~~\: '~·:·':t;·" .. ·'.·.:~;~::<.i~,:·'·I> .. WHEREAS STANFORD has entered int~ Contract SD-183 with the Office of the '.' :,<=. . '·~'·i~::·h:·:>,~'~:'::.;~·:' Secretary of Defense; and.· :'. ;'~'.' . ~< !·:;:~·:;~:{i~:'·~··h7,:.:;~:i·)· . ." ,. . -:-'.':': . '<. ";;'~':'~" .:: ·:-,:~;~:i('< .. WHEREAS both parties hereto desire to enter into' a subcontract thereunder:,.:'·:.::.;:; . ~~·;· .. :),~·,;·~;:~g;:.~:~:.~{~:·.: ... :for the performance of certain work, for t~e' considerati.on: hereinafter stated;:·;·~·:t>:·'~·.:·
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:~";:·:;"~(:':·Ii":;;::~·:t~ .. · September 15 1965 and shall deliver a: report·· thereon. ',' ..... .1': ~.: ,~.' .. :"'>"':I ".:'. <, j:~~:)~~>:~·t~:ft;:~:.:!;. " (\.: . ..1.~'}~>}.':·;·:·:)· ~' i . .'~:~:"····!~'!·{;'~.:·~··I·~i·.:·.i. Article II - Consideration and Payment / .•. .::::.: .. , .. ': :; ..... ~: <~:>~t~{:;~fU~:·~:f~t!t:;i~ '.' '.. .' "':. .. ~\I·/f··~;:::·:(~:·:~· i
.; ·<=:!:-:~;;ij.\::,::I:'~':,~.~;~~:;: STANFORD shall pay III $5,000· in full con~ide,..a.tion .of the work .J~:~' \\5~?;.:; .:: :~ ... ~·.::~:;·>:~'r;ri:·:;· .. ;'£~ performed under this agreement· upon acceptance ·.of .. the: report •. ', .The· voucher··;'···::::~:, .. ::,;~~ . .:-.. :':·: .,::';' ~ ... :nr:·;·'>:"'i·:'.:.~.is to be mailed to Mr. Robert Langle, Computa·tion·.:·Center·,·:· Stanford Uni-.· ::-:.::'\::\',?:;:.::~, .j'<
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In these provisions I the term "Contracting Officer" shall mean ~ ... :.:r~~~:.~.~;(.i.!';:::~~~~: ... ~;STANFORD; the t~rm "Contract',' shall mean this Subcontract; and the .term :::.~.:.~.~t/;--r :-:'.~'~::~;~:",' "Contractor" shall. mean III. \':~>\/~ .. 'f:~:.~: ~.:::~~::~i.:> ;'
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OFFICi: MEMORANDUM. STANFORD UNIVERSITY • OFFrCE MEMORANDUM • :iTANfOKU UNIVI:K:'IIT ..• urrn .. 1: ml:mv""" ... vvm ·f . . --
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To
FROM
SUBJECT:
DATE: 24 January 1966
The Space File
George E. Forsythe
Lester Earnest says that ARPA's AI project will grow to about 30 persons. We estimate they will need about 6600 sq. ft. of gross space. Their computers need about 2500 sq. ft., with laboratories. That totals 9100 gross sq. ft.
The Computer Science Department has about 12 faculty, 6 TA's, 3 secretaries, one Research Associate, and about 2 visitors, totalling 24 persons. At 260 sq. ft. per person (because so many are senior faculty), we need 6240 sq. ft. gross. This does not include classrooms or library expansion.
The two needs together run to 15,300 sq. ft. gross. At $30/ sq. ft. the building would cost 460K.
Provided enough red tape is spun and time elapsed, ARPA will be able to pay for the AI project's space, with lO-year depreciation. Thus ARPA could cover about 270K, (plus interest charges, I assume). The remaining 190K needs funding. I have heard that NSF would cover between 1/3 and 1/2 of that--probably 1/2 of the research part = 1/3 of the total cost. Say NSF covers 65K, leaving 125K. If Stanford could find about half of that, say 65K, that finally leaves 60K which would have to be raised from private fund-raising.
This is as close as I can come to justifying Moses~t assertion that raising 50K is all that is needed, once ARPA comes thro~gh. (Langle is ill.)
Earnest says that Jessie Wilson of Materials Science went through the red tape of getting ARPA to pay over 10 years for that building.
Earnest says that portable classrooms can be,leased for $6 to $7 per square foot per year. ARPA would pay for this without question. For 3000 sq. ft. it would cost $20,000. Site preparation would be about $1000 plus bringing in utilities.
It would be cheaper to buy the trailers for an occupancy of over three years.
Only about 3 weeks' lead time would be needed.
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Memo to The Space File 24 January 1966 Page 2
I have the following names in mind for donations for the CSD building :
Cuthbert Hurd , Palo Alto Edward J . Hamilton , Atherton J . P . Nash, Woodside Bank of America (Bi sey ) First National Bank of San Jose (Howard Rathbun ) Ford Foundation Carnegie Foundation Sloan Foundation
Feigenbaum has given the AI project an eviction notice. I have urged him to " rite me a letter, detailing hOI; badly the Computation Center needs all of Polya Hall . I think our deans are still not worr ied enough about our needs .
GEF : js cc : L. Earnest
E. Feigenbaum / . J. McCarthy V L~
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: :,}lFFICE MEMORANDUM. STANFORD UNIVERSITY • OFFICE MEMORANDUM • STANFORD UNIVERSITY • OFFICE MEMORANDUM
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DATE: February 2, 1966
To : Drs. Hubert Heffner and Lincoln Moses
FROM' : L. D. Earnest
SUBJECT: NSF Funding vs. ARPA Accelerated Depreciation for New Building
This memorandum compares the costs to the University of funding space for the AI Project in the planned Computer Science building in two different ways. The conclusion reached is that NSF funding has both short-and long-term cost advantages over a possible "accelerated depreciation" arrangement with ARPA.
NSF Funding
It appears feasible to obtain half the cost of the new building (including space for AI research) from NSF. Under this arrangment, the University would still collect from ARPA the standard overhead space charge for the AI Project. For the near future, this will amount tv about $12,000 per year. Both the space charge rate and the wages to which it applies have been increasing and may be expected to continue in that direction. Thus if the project continues, the annual space charge may be expected to rise.
ARPA Accelerated Depreciation
It might be'possible to arrange with ARPA for accelerated depreciation payment on a new building, by obtaining an exception to the Armed Services Procurement Regulations. Under this arrangement, the University would initially finance the entire cost of the AI space and would be reimbursed by ARPA at a rate of one-tenth the construction cost each year for a maximum of ten years. The overhead space charge would be waived during this period, but would be resumed at the end of ten years.
Sample Calculation
It is necessary for the University to finance at least part of the construction cost under either arrangement. In order to compare them, we use the well-known capitalistic difference equation:
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c = interest rate
ai = payment made in the ith year.
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-. OFFICE ME!A0RANDUM • STANFORD UNIVERSITY • OFFICE MEMORANDUM • STANFORD UNIVERSITY • OFFICE MEMORANDUM
DATE: February 2, 1966
To : Drs. Hubert Heffner and Lincoln Moses
FROM' : L. D. Earnest
SUBJECT: NSF Funding vs. ARPA Accelerated Depreciation for New Building
This memorandum compares the costs to the University of funding space for the AI Project in the planned Computer Science building in two different ways. The conclusion reached is that NSF funding has both short-and long-term cost advantages over a possible "accelerated depreciation" arrangement with ARPA.
NSF Funding
It appears feasible to obtain half the cost of the new building (including space for AI research) from NSF. Under this arrangment, the University would still collect from ARPA the standard overhead space charge for the AI Project. For the near future, this will amount tv about $12,000 per year. Both the space charge rate and the wages to which it applies have been increasing and may be expected to continue in that direction. Thus if the project continues, the annual space charge may be expected to rise. \
ARPA Accelerated Depreciation
It might be'possible to arrange with ARPA for accelerated depreciation payment on a new building, by obtaining an exception to the Armed Services Procurement Regulations. Under this arrangement, the University would initially finance the entire cost of the AI space and would be reimbursed by ARPA at a rate of one-tenth the construction cost each year for a maximum of ten years. The overhead space charge would be waived during this period, but would be resumed at the end of ten years.
Sample Calculation
It is necessary for the University to finance at least part of the construction cost under either arrangement. In order to compare them, we use the well-known capitalistic difference equation:
where
(i = 0,1,2,; •• ,10)
Xi = principal amount· at the end of the ith year
c = interest rate
ai = payment made in the ith year.
As a basis of comparison, I shall use the building cost given in Bob Langle's mIemhorllandum of 1 February 1966, namely $273,00~ for AI space (9100 sq. ft.@$30/sq.ft.).
s a assume an interest rate of 5 percent (c = 0.05). .
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Under NSF funding, only half of the construction cost would be borne by the University, so Xo = 136,500. Making the conserative assumption that the ARPA overhead charges remain fixed, rather than increasing, we get a. = 12,000 (i=1,2, ••• ,10). Under accelerated depreciation, Xo = 273,000 and ai = 27,300.
The results of running the calculation through the possible ten year life of the accelerated depreciation agreement are given in Table, 1.
Year NSF Funding Accelerated Depreciation
° 136,500 273,000
1 131,325 259,350
2 125,891 245,018
3 120,186 229,969
4 114,195 214,161
5 101,905 191 ,575
6 101,300 180,154
7 94,365 \ 161,862
8 81,083 142,655
9 19,431 122,488
10 TJ.,409 101,312
Table 1. Comparison of Amounts Owed by the University
It can be seen from Table 1.that the NSF funding arrangement would be significantly advantageous at every time in the future. The outcome is not sensitive to the interest rate used, but the difference increases locally with increasing interest. The fact . that overhead space charges will almost certainly rise further increases the NSF funding advantage.
Since ARPA is not firmly committed to continuing, support under either arrangement, there is some risk that the University may have to ~ind another use for the space at some time in the future. As can be seen from the table, early termination of the accelerated depreciation agreement would be much more costly to the University than NSF funding.
Recommendation
Since there is considerable uncertainty about whether an accelerated depreciation agreement could be obtained and it would not be to our advantage anyway, it is recommended that NSF support be sought for the entire Computer Science building. '
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OFFICE ME~ORANDUM • STANFORD UNIVERSITY • OFFICE MEMORANDUM. STANFORD UNIVERSITY • OFFICE MEMORANDUM
•
To
FROM
SUBJECT:
DATE: October 22, 1965
J. McCarthy
R. Langle
Tentative budget for ARPA proposal
Joyce Friedman told me she was charged with the responsibility for writing a continuation proposal. I volunteered to prepare a tentative budget.
The attachment essentially represents a combination of the people you presently have working on time sharing and artificial intelligence with allowance for expansion of one research engineer and four professional programmers 0 On any proposal I would group all the student research assistants together, but I have listed them individually here for your evaluation.
Joyce told me that you contemplated buying $250,000 of additional equipment each year. She also told me that the budget should have a target of approximately $600,000. MY budget is about $200,000 per year over this, so there will have to be some cutting or else you will need to talk to ARPA out of more money.
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Artificial Intelligence Project
Budget for Continuation
June 15, 1966 - June 14, 1968
Salaries
McCarthy, John, Principal Investigator; 1/2 time acado year; full time Summer
Feigenbaum, Edward, Associate Investigator; 43% time acad. year; full time Summer
Friedman, Joyce, Assistant Professor; 1/ 2 time acad. year; full time Summer
Watson, Richard, Acting Asst. Prof; 1/2 time acad. year; full time Summer
Roth, Bernard, Asst. Prof. of M.E.; 1/6 time acad. year; 1/2 time Summer
Earnest, Lester, Executive Officer
Grayson, Aram, Research Engineer
, Research Engineer
Wooldridge, Dean, Senior Res. Asst. 67% time; 12 months
Russell, Stephen, Programmer/Analyst
Feldman, Gary, Senior Res. Asst.
Allen, John, Programmer/Analyst
Novotny, Margaret, Programmer/Analyst
Four Professional Programmers Benedict, Jordan; Technician
Huberman, Barbara S.R.A. 1/2 A. Y.; full time Summer
Jacob; David S.R.A. 1/2 A. Y.; full time Summer
Leifer, Larry S.R.A. 1/4 A.Y.; full time Summer
Pingle, Karl S.R.A. 1/2 A. Y.; full time Summer
Pollack, Bary S.R.A. 1/2 A. Y.; full time Summer
Ratchford, Harry S.R.A. 1/2 A. Y.; full time Summer
Reddy, Dabbala S.R.A. 1/2 A.Y.; full time Summer
6/16/66-6/14/67
$13,250
10,667
8,750
7,917
3,367
19,500 15,000 14,000 7,200
1l,220 10,200 10,800 9,000
44,000 6,900 4,150
3,450
3,900
4,050
3,950
4,150
4,150
6/15/67 -6/ 14/ 68
$13,250
10,667
8,750
7,917
3,367
19,500 15,000 14,000 7,200
11,220
10,200 10,800 9,000
44,000 6,900 4,150
3,450
3,900
4,050
3,950
4,150
4,150
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Rode, Diana S.R.A. 1/2 A.Yo; full time Summer
Safier, Fred S.R.A. 1/2 A. Y.; full time Summer
Scheinman, Victor S.R.A. 1/2 A. Yo; full time Summer
Stein, James H. S.R.A. 1/2 A.Y.; full time Summer
Stygar, Paul S. R. A. 1/2 A. Y.; full time Summer
Thomson, Frances, Secretary Full time 12 months
Waterman, Donald S.R.A. 1/2 A. Y.; full time Summer
Weiher, William R.A. Full time Summer
Allowance for Salary Increase (5%)
3,950
4,150
3,450
4,050
3,950
5,100
4,150
1,650 $250,021
Staff Benefits (8-l/2%) 21,252
Overhead (46%) 115,010
Subtotal, salaries and assoc. costs
Capital Equipment
Equipment Maintenance
Travel
Computer time
Connnunication
Other Operating Expenses
TOTAL
$386,283
250,000
50,000
15,000
40,000
24,000
25,000
$790, 283
3,950
4,150
3,450
4,050
3,950
5,100
4,150
1,650 $250,021
12,501
22,314
120,760
$405,596
250,000
50,000
15,000
40,000
24,000
25,000
$809,596
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R. J . Langle Computation Center
R. B. Kennndy Re~earch Administration
Contract SD-l83, Modification 1 (Artificial Illte111genee Proj8et)
27 October 1965
We have received the fully executed copy of the subjec t modification and enclose a copy for your use.
By mean~ of this modification additional funds of $1,529 ,000 are provided . The total estimated coat is now $1,949 ,200.
The account number for use on this contract is: 2 FCZ-702 .
Encl Mod . 1 General Provisions G. E. Berry 1tr of 10/12/65
cc: /McCarthY. Computer Science Dept. A •• ociate Provost for Research President's Office PBR (w/encl)
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19 Kpyember 1965
Depar~nt of the Aray nefeD •• Supply S.rvlce-W.-b1naton W ~htn8ton. D.C. 20110
Attentlou: tu, Gaurse E, 8arry, Chie! Contract. .r4n~h
Reference:
We e~clo8. ten copies of uur ,ropo.~l for continUAtlon of the ~t$llford A t.ift.hl Iotall.t.sence Project, vwte:r the dh'ec:tion of P.ofuaor John KcCanhy, Ccuputer Science DeP'll'tJllant. St4tll!ord Uni".ralLty, II. aleo eneto •• our adminl~rativa supplement for thLs pl'o~o.al.
(Nr proposal Is for 1& period of two y1!&U beatll&do8 14 JUM n66, FImd. wouloi be 1'6quind 11l the IIIDOlUlt of $2,051 ,034, A lnJdget of an.tidpat.ed el<penaes 1e pre$ente4 Oft plI~ 4 &11d .5 of the prepoNl bo1)ktet.
Thi. proposal haa the .pproval of the Univereity'. adlll1nhtrlltiOJt.
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bee: --r.- McCarthy R. J, Langle
81..":e,,..1y your ••
Robert Il. lKenae4y CQl1t.1'ac:t .\dalni.trator Roaa 224 Ellci1lll
Associate Provost for Research President's Office
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Final Judgment .. '. trad.e and commerce. a"a~nst unlawful r.~·· \; " DA\'fD N. EDEI.5TEIN, District Judge [I": 8tral~ts and monopohes, commonly kilO\\,; ~
/_11 'tX'): Plaintiff, United States of'; ~s th~ Sherman Act, as amen~ed. " ;.! :~~~ ... '1 Amcrica, having filed its complaint herein.... II" /~~ .: 'f'· ': .. on January 21, 1952; defendant Inter- . ,;" .~: .. :' .. ~ .. national Dusinr.ss Machines Corporation . [Dei:"ilioru) .. / ,'.1': ' .. ,' :.: .'
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(hcrcinart~r called IBM) having .appeared As used in this Final Judg' . t· ", '!. ". . and filed Its answer to the complaint deny- . . men ~ '. i;· "'-inlt the material allegations thereof; aud . . (a) "Tabulating card" .shall mean a unit.' : plaintiff and derenaant, by their attorneys, . recor~ card designed for the' recording of • :\. " lining consented to the entry of this Final .. data In the form .of pun~hed holes to be " " .. ,:,:
1 Judgment, .without trial or adjudication of , ~ensed by ~echanlcal o~ electrical (hlclnd- '.J. ': . any is!'tle of fact or law herein and without '. Ing electrOniC) means. . .:!.c ... , i
.,~ any admissio~ by eit~er party.with· respect;' (b) "Tab~lating card !11a~hinery" shall·.~ ,.~':'. i I 10 any 5uch Issue;. : " mean machmes and deVices, and attach- I : .. ~ ..
. j Now, therefore, before any testimony has~' "ments therefor, used. to 'l!ake' tabulating .~:' :.: lKocn taken herein, and without trial. or . cards. . '. . : ~.:. ~ I.'
. a(lju~icRtion of any issue of fact o~ law'. (c) "Tabulating system" shall mean ~fly .... ~~: i;' ." .. I' htrcln, and upon consent, as aforesaid, .~L. group of machines capable 01 entering,' .~.\ ,\. flCh party hereto, . , • " : ' .::' ~onverting, re.ceiVing, cl3:ssifying, compu~-,"·f.· .": •. !
It i. hereby o,rdered, adjudged, and 'de~ .: lng and. recording alph3:be!lc and/or"numenc r:.: crfcd IS follows: . I ;.' accounting and/or stahstlcal4lata by means .... ~.;: I
. I. I . '. of tabulating cards, and !n which tabulating /.r;.~.: ,~ .', : cards are used for storing data and com.; :,!{~t .. :, J
[She,,,UJ,, Ad) .. ; municating it within the system; provided,.,. " ~. nle Court b1ls jurisdiction. of the sub- .. !!'at "tabulating syste"!" sh.ann~~· include, .. :' :~::!
Jfct matter <!f .this action an~ o~ the·.p~rti.~~. :, electronic data pr~c~SSI~g ~y.teiri . as here". ". '~(.' ~;' The complaln~ states a claim upon :wlnch . , lnafter .defined •. :.·. " .. ' ." '., ..,. 1.'",: rclic! can be granted against IBM .. ~ndet .... Cd) "TabuJatlng, m'chlne"· shall mea~ I,:'>:'::'j StellOn. t and Z C)f the Act of ~nares!l of .. ! maehl~e ot de"c~.alnd attachm,enu tl~eter()r' :·J··'!:i Jul, .2, 1890, entitled ':':~~ ~'.c:~t~~~t:.~t~~~,~~,/~:·.~8~~ .~t~~~~~~· i~.~ ~:·t;~~~~~'~~ .. ~ 8y~tem •. · "~\'<I~L!n !ncleRepJatJoaReportlf~~~9··~~~.~.~?>.:>:<·::~,>.·;r.0> ~,'~i: ..... : •. \~.!;: .. :;;,i "~'{~:':"':-""'~ 6S.~2~~.; . .':. t
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.. . -71,122 Court Decisions Number 41-76 '
, 2-10-se U. S. fl. inttnuJtiona/ Busintss Machints Corp •
(e) ,"Electronic data processing system" "its customers under' its machine service shan mean any machine or group of auto-', . agreements. maticaUy intercommunicating machine units, i, '. • '
I capable of entering, receiving, storing, classi- , , (k) Serv!ce b~reau buslI~ess" shall mean lying, computing and/or recording alpha- " the I!reparatlon Wlt~ tabulat!ng and/or elecbetic and/or numeric accounting and/or:" ~onlc d~t~ processing machl.nes .of .accou!'tstatistical data without intermediate Use of ~'" 109, statistIcal and mathemataca~ ,mformataon tabulating cards, which system includes one'l ~ and rcrports for others on a fee basi~: , or more central data processing facilities.' ;'; (I) "Service bureau" shall mean an or- • a!,d one or more storage facilities, and has", ganization engaged principally, in the serv-
, ather ." ice bureau business,
. , ,~: . (1) the abili~>: !O receive ~nd retain ill\ ',' (m) ."Existing patent" (or "existing pat~ ~he stor.age factlltles at least so~e of the ents") means any United ,States. letters
! lO~tructlons. for the data processing oper- ,patent (including, but not limited to, the " atlons reqUired, or . · patents listed in Schedule A to be filed in
(2) means, in association with storage, this Court within 30 days after the entry . .' inherently capable of receiving. and utiliz-'''' of this Final Judgment) or patent appli
ing the alphabetic and/or numeric repre-' :' cation, and any division, continuation,' re~ sentation of either the location or th~'I!1 issue or extension of such patent, relating, identifying name or number of data in' but only in so far as it relates, to tabulating storage to control access to such data, or '/ cards, tabulating card machinery, tabulat· ....... '-
(3) storage capacity for 1,000 or more':' ing ma~ines or .systems, or electronic data alphabetic and/or, de'cimal numeric char-I processing machines or system~. owned or acters or the equivalent thereof. controlled. by IBM on JanJary I, 1956, or.'
under which IBM the d the power to (f) "Electronic data processing machine"
shall mean a machine or device and attachgrant litenses or subl' 'Scs to other persons.
, (n) "Future pal ent" (or "future patents") ments therefor used primarily in or with an means any United States letters patent or electronic data processing system. patent application (exclusive of existing
(g) "Standard tabulating machine" or patents.)~· ·and any division, continuation, "standard' electronic data processing ma- reissue or extension of such patent, relat-
I chine" shall mean a tabulating machine or ing/but only in so far' as it relates, to tabu,an electronic data processing machine manu-', lating cards, tabulating card machinery, factured. by IBM and ~ade generally avail- /' 'tabu~ating machines, or syste!"s, or elecable to Its customers. trODlc data processang machines or' sys-
(h) "Special purp~se tabulating machine" tems, owned or controlled by IBM during or "special purpose electronic data proc- the period of five years following 1 anuary essing machine" shall mean a' tabulating I, 1956, or under which IBM during such machine or an electronic data processing period has the power to grant'licenses or machine designed and 'produced by IBM sublicenses to other persons. for use by a limited number of customers (0) "Subsidiary" shall mean a'~orporation but not made generally available to all IBM more than 50% of whose' stock entitled to customers. vote upon election of directors (other than
(i) "New" machines shall mean tabulat-, preferred stock entitled' to vote upon the ing . or electronic data processing machines failure of the corporation to' pay certain ' produced (1) by original assembly of neW dividends) is, directly or indirectly, ·owned
, by IBM. I I' ~ and/or used parts or components or, (2)' as ' to any type of machine generatty offered lor lease which is not currently 'being so assembled but is being produced by rebuild-· ing existing machines, by, such rebuilding.
(j) "Point value" shall mean the dollar amount of ther monthly charge ,made, ,by IBM in respect: of-a tabulating or..electronic data processing machine leased· by,:IBM . to
,',68,245 . .,
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(p) "Person" shaU mean an individual, partnership, firm" association, government, governmental institutiQn, or, corporation other" 'than individuals, who are' di~ectors, officers,. ::employees, agents, \ and, . repr~ senta'tives, of: IBM, but . shall ,not. include '8ubsidiaries. of IBM ~ unless Guah: inclusion
I i~. specifically. provid~d 'fOr~" /Il'~ r ,\.~r:l i,
@ 195&, Commerct! Cleadq.IJo_'ID~ . . ~,
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Cited 1956 Trade Cases 171,123 U. S. II. 1"'ematioHtJI BtiliMss Machines Cor, .. '
III .
(A,,,licability 01 Judgmen']
The provIsions of this, Final Judgment ar.pJic:abJe to IBM shall ,also be applicable 10 it,; subsidiaries, officers, directors, agents, tmployccs, successors, assigns, and all perJOnl acting under, thrQygh or (or IBM, bUI shall not impose any obligation to do· or omit any action outside the United States unlesl specifically provided for hereinafter.
IV
',' . (2) establish a' sale price for each rna. \I!: chine offered for sale pursuant' to para
.. :., graphs (b)(2) and (b)(3) of this Section' .' I IV which shall have a commercially reat ~ sonable relationship ,to 'the lease charges '., r for such machine; ,I',: (3) establish such other 1l0ndiscrimi-' \ .. ~ 'natory terms as may be appropriate to' , I; . the sale' of tabulating or electronic data Jli. processing machines, including, at the ,'r option of the purchaser, reasonable credit .4
,~;·'terms for purchasers having satisfactory ,. ; I credit ratings and such warranties, as arc t II'customary for the sale of similar busine~s ' '
• ..' "J machines' I
(a) It IS thc purpose of thiS SectlC!n IV I'.' '. .•
(Sale 01 Tabulating Machines]
of this Final Judgment ,to assure to users .... 1 (4) a.fford to ItS .salesmen compe~satlon • and prospective users of IBM tabulating .'. for selhng tabulatmgand electrOnic data ~ . and electronic data processing machines at ~; processing mac~ines which shall be not Any time being offered by IBM for lease and.' less favorable to them than' their. compentale all opportunity to. purchase and own ':,~. sation for leasing the same machines; JlIch machines at prices and upon t~rms ';.). (5) make a full and fair disclosure, in i and conditions which shall riot be sub- .,!: the solicitation of orders for tabulating .rantially morc advantageous to IBM than . ',': and electronic data processing machines. dIe Icasc charges, terms and conditions."" of the prices and terms for the sale and lor such machines. .: 1,1; lease of such machines;
(b) IBM is hercby ordered and directed, "~'i (6) furnish in writing,. up~n. written, beginning not later than one year after the .; . requ~st, to each person mqUirang conentry of this Final Judgmcnt, to offer '!I"cermng the lease or purchase of IBM
(I) to sen, at· a~y time during the d .; tabul~ting or electrc;mic dat~ processing ,', period of 18 months next· thereafter, to ,.;,'1' ~achm~s complete Informahon concern"
. , the: lessce of any IBM tabulating or r .... I~~ dehvery dates and terms and. con-; 'electronic data processing machine each 'J:.'dltlO~S of lease .and purchase of, such ; •. such machine being used by such lessee; :" machines; and . • (2) t~ sell new standard tabulating and .' ~ ~ :: (7). filt purc~ase and lease orders fo~
electrOniC data processing machines of. . . machmes reqUired. to be. sold by. para ,ea~h type at any t!me thereafter currently .Ii :· g~ap~ ~b)(~) of thiS Section IV wlthou~ . bell1g mam.tfactured and offered for . lease dlscflmmatlon between, leas~ and p~r
, or !Oalc by IBM' and ' .. tha~e orders a~d, to the exteht :,dnums- " , , ' . .' tratlvety practtcable and permitted hy .
. ' .. ' (3) t,o sen any ne!, special' purp?se Jaw, in the order of their receipt, . . , "labuJatll1g or electronIC data processmg ,. . \ '.' . ,
S' machinc to the user for whom it }las been , (d) In any cI,:d ~Ult or proceedmg Instl-_, dc..;igned and produced by IBM. tuted by the Plaintiff between two ·and tcn '>
. ' . . years after the entry of this Final Judgment, . '" (c) IB~ IS hereb~ ordered· and dl- r in which IBM's compliahce or. non'com- •
reeted to. , ,pliance with the provisions' oFt his Section (I) establish a sale price for 'each ma-, "IV shalt be an issue, the burden '0£ proof
chinc oR'cred for saJe pursuant to para- . 'shall be upon IBM' to' establish that· it has 'graph (b)( I) of this Section IV 'Which complied with the provisioris "or: this Sec-,I ~halJ not be greater th'an the sale price tion IV, _ :" ;/.. U'.~
, Jor a new machihe o( the same type1and: .. '.' V.:.,'.' ., ',.\, ", ,,' : modcl Icss 10% for eac~ fuJI year of :tge, /', . .." '. . , ,
computed from the date of first instal-': '[Used',Tah,ulatang .MtJel".n~fJ ' , !ation after original assembly or' -rebuild- ".':: "(a) IBM.,;.;-i&-hereby" eEjoi' ltd' ',and . rc- , I~g, except that for, machines 'rttore·than '~strained': from .acquiring'~ Y' used· .. IBM· eight years'of age the prioe .m. aY"be: no. t, .. tabUJating.!lor,:.:eleet~ni ~ .~data:: processing
'more than:2S%:of 'such sale:prict:I!·",1~! ,·machinel.oWned'by.·a . ther:'personor ,the . " '." : ':-" . . ,.' . ( . ',~ ;.., .'.: -' " .: \
TradeRegulation'Reportamo~ ~~-!<:1':'~' .: . ': ," , ..... ' '/".:: 'tV, 68,245.
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71,.1.24 Court Decisions Number 41-78
U. S. tI. ["'emational Bsuirrus Machi"es Corp. , 2-10-56
Service Bureau Corporation hereinafter provided for in Section VIII of this Final Judgment otherwise than as (1) a tracie-in on a purchase of a tabulating or electronic data processing machine from IBM or (2) .a reasonable credit against sums then or' thereafter payable to IBM by a customer •.
(b) IBM is hereby ordered and directed to solicit, in the manner specified in the
, provisions of paragraph (c) of this Section V, from dealers in second-hand business machines orders for the purchase of any
',' used IBM tabulating or electronic data . processing machines acquired by IBM pur- '
8uant to paragraph (a) of this Section V.' The price charged by IBM for any such machine shall not exceed 85% of the price computed pursuant to paragraph (c)(l) of Section IV of this Final Judgment.
(c) IBM is hereby ordered and directed: (1) within one year after the entry of
this Final Judgment, and each six months thereafter for a period of five years, to
:. cause the provisions of this Section V to be published in at least two trade journals . of general circulation among dealers in second-hand business machines;
(2) commencing one year after the ',' entry of this Final Judgment, to furnish
at intervals of not more than 30 days , " to all dealers in second-hand business .: '. machines who shall within the preceding
180 days have made written requests therefor, and to at least one national trade association of such dealers, a list
~:;.of all tabulating and electronic data 'processing machines acquired by IBM pursuant to paragraph (a) of this Section V since the date of the making of the last such list, and the prices thereof; and
(3) to keep all machines listed in the information furnished pursuant to subparagraph (2) of paragraph (c) of this Section ,V available for inspection and purchase by one or more of such dealers for a period of 60 days after such information shall have
. been furnished.
VI [R~pai" ami Mai"'ena"c~ S~",ices-Pa,.,s]
IBM is hereby ordered arid directed: (a) to offer to render, without separate
. .charge, to purchasers from it of tabulating .or electronic data processing machines the ~ same type of services, other. than mainte-
11 68,245 ~ ... t
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,
nance and repair 'services, which it renders without separate charge to lessees of the same types of machines;'
(b) to offer, commencing one year after-'( t' . the entry of this Final Judgment and so rJ long thereafter as IBM shall continue to render repair and maintenance service, to maintain and repair at reasonable and nondiscriminatory prices and terms IBM tabulating and electronic data processing machines for the owners of such machines; provided that, if any such machine shall be altered, or connected by mechanical or electrical means to another machine, in such a inanner as to render its maintenance and repair impractical for IBM personnel having had the standard training and instruction pro'vided by IBM to such maintenance and repair personnel, then IBM shall not be required by this Final Judgment to render maintenance and repair service for such IBM machine; and
(c) to offer to sell at reasonable and ·nondiscriminatory prices and terms, to owners of IBM tabulating or 'electronic data processing machines (whether or not tbe purchaser receives IBM repair and maintenance service) and to persons engaged in the business of maintaining and repairing such machines and during the period when, IBM has such parts and subassemblies available for use in its leased machines, repair and replacement parts and, subassemblies for any tabulating machines or electronic data processing machines manufactured by IBM.
VII [Reslricliom 0" Lessees a"d Purchase,.s]
(a) IBM is hereby enjoined' and restrained, for a period of ten years after entry of this Final Judgment, from enter~ ing into any lease for a standard tabulating or electronic data processing machine for a period longer thau one year, unless such lease is terminable after one year by the lessee upon not more than three months' notice to IBM.
(b) IBM is hereby enjoined ,an" restrained from requiring any lessee or pur
.' chaser of an IBM standard tabulating or electronic. data processing machine to dis
,close to IBM the 'use to be made of the machine. .' (c) IBM is hereby enjoined and re
strained from requiring any purchaser of an IBM tabulating or electronic data proc-
@ .1gsa, Commerce Clearing House, Inc.
,:
.1;
Humber 41-79 2·10·55
Cited 1956 Trade Cases ; . 71,125 u. s. v. It,'erllal;ollol Bruille.fS Machilles CtJrp .. ··
('ssing machine to have it repaired or mai~- . leasing space froin IBM at the locations tained by ,I BM or to purchase parts and of inore than 20% of its bureaus; or subassemblies from IBM. (4) for a period of nve years after the >_.
(d) IBM is hereby enjoined and re-' organization of the Service Bureau Cor- . .' .trained from: poration, having a board of directors the
. majority of which is constituted of per- . (I) requiring any lessee or purchaser • sons who previously have not been ap
of an IBM tabulating or electrollic data-·· proved by this Court. processing machine to purchase tabulat- "~. . . ing cards from IBM or directly or 'indi-, '; (c) The Servlc~ Bureau Corporation shall rectly discriminating against, any such .. be ordered and directed to: • person by reason of the fact that cards (1) maintain, in accordance 'with good not manufactul'ed by IBM are used, ." ~ccounting practice, separate and com-"
(2) prohibiting, or in any way subject- ~ ,: '. ple!e corporate r~cords and acc?unt!' ing to IBM control or approval, experi- ' .,' which shall ~e audited annually by mde-mentation with such machine, or . ~.'. pendent public accountants; and
(3) prohibiting, or in any way subject- (2) charge for services rendered by it, ing to IBM control or approval, alter- prices based ,upon rates which shall fairly at ions in or attachments to such machine; reflect all expenses properly chargeable
, thereto provided, however, that nothing provided, however, that this Section VII(d) herein contained shall prevent the Service /. shall not be construed to restrain IBM from Bureau Corporation from reducing any including in any agreement with any le!isee price to meet an equally low price of a of such a machine provisions reasonably competitor. designed to prevent such interference with the normal and satisfactory operation and maintenance of such "machine as will substalltially increase the cost of maintenance .btreof. ..
VIII
(Service Bu,.eau Busilltss)
(a) IBM is hereby ordered and direCted to transfer, within one year after the date of the entry of this Final Judgment, all its' contracts for service bureau business to a corporation (hereinafter called the Service . Bureau Corporation), which may be wholly owned by IBM, and IBM shall thereafter be enjoined and restrained from engaging in the service bureau business except on a nondiscriminatory basis for the Service Bureau Corporation and for service bureaus operated by other persons.
. ' (I» The Service Bureau Corporation shall be enjoined and restrained from:
(1) using any corporate name containing the words International Business Machines or IBM;
(2) employing any person also employed by IBM, or any person to solicit for IBM any 'order for the sale' or lease
, of any IBM tabulating or electronic data processing machines or. systems; ,
(3) after three years following the date of the entry of this Final]udgment,. sub,-
TndeReguJatJonRepOrts ,'ir,,:),;;:~I:.:;~, I .
(d) IBM is hereby ordered and directed to notify promptly service bureaus using
.JBM machines of the availability for purchase or lease as required by this Final Judgment of each new type of standard' tabulating machine and electronic data processing machine offered by IBM for general use by its customers and of each new type of special purpose tabulating, machine and electronic data processing mae. chine made available to the Service Bureau Corporation, and the prices, terms and conditions for the sale or lease thereof.
(e) IBM is hereby enjoined and restrained from furnishing to the Service Bureau Corporation any tabulating or electronic data processing. machines .except upon the same' terms, conditions and delivery schedules' that such" machines are furnished to any other service bureau . •
(f) IBM is hereby ordered and directed to furnish, upon written application and at reasonable and nondiscriminatory charges, to any person engaged, or proposing to .. engage, in the operation of a service bureau using IBM machines copies of any pamph- ~'
. lets, books of instruction or other similar documents which it furnishes to the Service Bureau Corporation relating to the operation and application of IBM tabulating or electronic data processing: machines (or service bureau b\lsiness.·
." . 168,245
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;,
. , I
Court Decisions U. S. fI.lnternatioMl:BtUiness Machines Corp.
Number 41-80 2·IO·sa
IX (1) Entering into, maintaining, adher-
[R~."air and Maintenance Training' ing to, or furthering, directly or indirectly, f' any contract, agreehlent, or under-
and Information] standing with or otherwise inducing any IBM is hereby ordered and directed: '. manufacturer, distributor, 'or vendor of (a) For a period of five years from the raw materials suitable for the manufac-
date of this Final Judgment, upon written' ; ture of tabulating' cards to discriminate' request, to afford to any person (other ~han ,.' against or refuse to deal with third peragents or employees of a manufacturer of '. sons who buy or offer to buy such raw
,. tabulating or electronic data processing r materials. machines) who is engaged, or' proposes in (2) Discriminating' in price, between good faith to engage, In the repair and different purchasers of tabulating cards maintenance or distribution of IBM tabu- of like grade and quality, provided that lating machines and/or electronic data '/ this provision shalt not prevent differen-processing machines the opportunity to ob- tials which (A) make only due allowance tain training in the repa,ir and maintenance for differences in the cost of manufacture, of such IBM machines, which shall be sale, or delivery resulting from the diffef-substantially equivalent in method and na- ing methods or quantities in which such ture to such training then being given by '. commodities are to such purchasers sold
\ IBM to its customer engineering employees. ' or delivered, or (B) are made to meet . Reasonable and nondiscriminatory charges , I' an equally low price of a competitor. I~ .•
" may be made to reimburse IBM for the :,:' any proceeding to enforce the provisions. -,) , cost of furnishing such instruction and ~ny ," of this paragraph, IBM shall have the. I materials furnished to such person takmg ,', ",' burden of establishing to the satisfaction
instruction,' " ! •• of this Court that its price' differentials (b) Upon written request to furnish, at : i:. are in, ~act so justifiable.
reasonable and nondiscriminatory charges (3) Prescribing, fixing, establishing, or made to reimburse IBM for the cost of maintaining arbitrary, unreasonable, or' furnishing them, to any owner of an IBM unnecessary specifications for tabulating tabulating or electronic data processing cards used in standard' and special pur:' machin~ and to any person eligible to re- pose tabulating machines leased or re-ceive training pursuant to paragraph (a) pair~~ and maintained by IBM.:' of this Section IX copies of any technical (4) Entering into, maintaining, adhering manuals, books of instruction, pamphlets, ", to, or furthering, directly. or indirectly, diagrams or similar documents, which it :' I, any contract, agreement or'understanding
. furnishes generally to its own repair and', with 'or otherwise inducing any manu-, maintenance employees relating to tabu- facturer, distributor or vendor of tabu-,' lating or electronic data processing rna- lating card machinery' to discriminate chines and which pertain to such training. ' against' or refuse to deal with third per~ ..
(c) Upon written request, to furnish, on sons who buy or order to h,ave manu-' " , a nondiscriminatory basis, without charge , factured and buy such maclunery . . or at a reasonable charge made to reim~, (b) IBM is hereby ordered and directed, .
.1
~.
~. ~.
burse IBM for the cost of furnishing them, for a period of five years folJpwing the date· to purchasers and lessees of IBM tabulat- . of entry of this Final Judgment, to offer to ~ L ing machines and electronic data processing sell rotary presses in good condition, of ".,.." " machines, copies of manuals, books of in- the types used by IBM for the manufacstruction, pamphlets, diagrams, or similar ture of tabulating cards, upon reaso,~able' . documents. which pertain to. the operation a.nd. nondiscriminatory term} and condi-cr application of such machmes owned or, lions to a~y personi!:' ho., IS enga~ed, or leased by such purchasers or. lessees. proposes ID good fait,., 0 engage, ID the
; , "'! manufacture of tabu, ing cards and (2) has ! , X been unable to, , .. obtain delivery of such
[ Tab"'ali~g Car~P"ohibition.r~ S,a/~.r., . ,,' presses, as r,qiiired for his needs, within , - ' a reasonable time from manufacturers of
,." t' ::' :D.lvestit"re] " .. f , .... , •• printing presses; provided, that IBM shall {a) IBM.is hereby enjoined and restrained not be/obliged to deliver' more than 30
from: ,/".;,"': .,'" ":. ,';'\:.1< pressesineaehyear~" " \ /
11 68,245 , .
'I ....,.
I .,
/' @ 19~. CommerCe Cl~nl House, InC. \, / . '.; . .j' ",1 .' •
-----..:, .... ' "7'. ~:~
Hu;"ber 41-81 ~ 2-10-50-
Cited 1956 Trade Cases U. S. 'II. InlernalioM' ~~ness Machines Corl.
, /
,(c) IBM is hereby ordered and directed, request and without compensation to a lor a period of five years following the date . person licensed under a~y IBM existing or of entry of this Final Judgment, to offer." future patent or patents pursuant to Section to sell, from its reserve stocks of paper.' XI of this Final Judgment, with respect to suitable for the manufacture of tabulating I any products manufactured in the' United' cards, any such paper not required for the ~tates pursuant to such license, ,a non-I reasonably anticipated needs of IBM, to exclusive grant of' immunity from suit un· any person who (1) is engaged, or proposes ' der any corresponding foreign patent or in good faith to engage, in the manufacture application owned or controlled by IBM or' '. of tabulating cards and (2) has been unable' ' a subsidiary of IBM. " .. to ob!ain delivery of such paper, as required . (d) IBM is hereby enjoined and re-lor hiS, needs, (r0f!1 manufacturers of such, strained from including any restriction' paper 10 the Umted States, IB~ may whatsoever in any license granted by it ch,arge for such pape~ amounts suffiCient to ': pursuant to the provisions of this Section reimburse IBM (or Its costs. , : 'XI, except as hereinafter provided:
Cd). Sev~n years from the date of e,ntry -: (1) th~ license' may' be nontransferable; of thiS Fmal Judgment IBM shall divest (J) 'hi It b ch cd itself, upon terms and conditions approved (excep~ (~~aik~~s:s r:~de: ~iitin~ pa~~ts by this Court, of such part o( ItS. then '~to make have made use and vend tabuexisting capacity for the manufacture of, 'lating c~rds and/or' tabulating card ma-tabulating cards as may then be in excess, chinery, which shall be royalty-free), of 50% of the total capacity for the manu:, which royalty shaU.pe non-discriminatory facture of tabulating cards in the United .' as .among royal~f.~paying licensees proStates, unless subsequent to four 'years, after, :' i cnrmg the s:tme:-"Tlghts under the same. the entry of this Final Judgment IBM shall .. ' patents"provlded ~~at the royalty ch,arged h h to th satisfaction of this Court an apphcant whQ-grants ~ patent ltcense ave sown. e , . • . ' . to IBM may reRect the fair value of such
tbat substantial competttlve conditions ex- i license' t'f'-:.. . ,
ist in the !Danufacture, sale and di~trib~tion " (3) ;easonabl~ provision may be made of tabulating cards or that such d.lvesbture lor periodic royalty reports by the licensee . i. not then necessary or appropriate, 'and inspection of the books and records ..;
. of the licensee by an independent auditor, XI , ' . an independent engineer or any person'
: acceptable to 'both licensor and ,licensee, [Licensing of Palents] .'who shall report to the licensor only the
(a) IBM is hereby ordered and directed . ,.amount of the royalty due and payable; to grant to each person making written .. ': (4) reaso~able provi~ion may be ~ade application therefor an unrestricted, non- ' for canc!!llatlon of the license upon failure
I · I' t k h d of the bcensee to make the reports, pay ne uSlve Icense. 0 rna e, , ave m:" e, use the royalties or permit the inspection of and vend tabulatmg cards, tabulattng card his books and records as hereinabove machinery, .tabulating mac~ines or s~stems, provided; and or electromc data processtng machme~ or (5) the license must provide that the systems under, and for the full unexpired licensee may cancel the license in whole term of, any, some or all IBM existing or as to any specified patents at any time and future patents. . after one year . from the' initial date
(b) IBM is her~by enjoi~ed and re- th~r~of by gi.ving 30 days' nQtice in strained from making any sale 'or other wrlttng to the beensor. disposition of any existing or future patent (e) Upon receipt of written appliccltion,_. which deprives it of the power or authority for a 'license, under' the provisions of this 'to grant such licenses, unless .the pur- Section XI, IBM shall advise the applicant " chaser, transferee, or assignee shall file in writing of the royalty which it deems with this Court, prior to consummation of reasonable for the patent or patents to said transaction, an· undertaking to. be which the request pertains. If the applicant bound by the provisions of, this. Section.' rejects the royalty proposed by' IBM and XI with respect to such patent. - " : if the parties are' \lnable to: agree up~n a
(c) IBM and its subsidiaries are ordered reasonable 'royalty within 120 days from the and directed, in so far as they have power" ·date,.: s~ch, ',rejectio~ ,'i8;~communicated in and right to do so, to gran~ upon -writtes,' wr.i!~g to IBM •. -the applieatit or IBM may.
Tnde Regulation Reports ~ .,;, (i') \ il(; (: 1 (.,\ . '\" ' ,
, ,
, ..... : ~ . "
" ..
'.68,245
-.:.".
.... J •. -:
~ .f
/
Ph'· - !, Q' ',.p ~~
71,128 . Court Decisions U. S. 'II. Inter,national Bu.rine~s Macllines Cort.
Number 41--82 2·10·56
. and for the full, unexpired term of each licensed patent, a nonexclusive license,
upon notice to the Attorney (ieneral, apply· to this Court for the determination of a reasonable royalty. In any such proceeding, the burden of proof shall be on IBM to establish the reasonableness of the royalty requested by it Pending the completion' of negotiations or any such proceedings, the applicant shall have the right to make, have made, use and vend under the patents to which his application pertains without payment of royalty or other compensation. A final Court determination of reasonable royalty shall be applicable to the applicant, and to any other licensee then having or
or the right to obtain a nonexclusive r license, to make, have made, use and . vend tabulating machines or systepls, or electronic data processing machines or systems under any, some or a11 of the
'United States patents and applications owned or controlled by said applicant or under which said applicant has the power to grant .licenses on the date or.'the request by the applicant for a license;
. thereafter obtaining the same rights under the same patents, at the option of· such other licensee, from the date upon which the applicant requested such license. If the applicant fails to accept a license, such applicant shall pay the court costs in such proceedings and any royalties found by the Court to be due to IBM.
(3) for a license und~r a future patent relating to tabulatinf{ cards or tabulating card machinery, said applicant agrees upon request to grant to IBM, for a rea-sonable royaltr and for the full, unex- 'j
pired term 0 each licensed patent, a ~. nonexclusive license, or the right to .ob- ~. tain a nonexclusive license, to make, have " made, use and vend tabulating cards or k
: tabulating card machinery under any, t.' some or a11 of the United States patents ~:
. and applications owned or controlled' by ....... '; said applicant or under which said ap-
(£) Nothing herein shall prevent any' ap- plicant has the power to grant licenses on plicant from attacking, in the aforesaid the d=tte of the request by the applicant proceedings or in any other controversy, for a license; an~d ' the validity or scope of any of the patents, (4) in any eve. e applicant agrees nor shall this Final Judgment be construed upon request t ... grant without compen-as imputing any validity of any said patents. sation, for ,any products manufactured
in the United States pursuant to such (g) The provisions of this Section XI license 1:10 IBM, a nonexclusive grant of
shall not require IBM to grant a license imm~lIt1ty to IBM and any subsidiary to any applicant unless: ?f ..IBM from suit under any. cos:respond-
, 109 foreign patent or application then . . (1) for a license under an existing owned or controtled by said applicant. patent (except an existing patent relating ... .. to tabulating cards and/or tabulating card / For the purpose of thiS Section XI(g), a machinery), said applicant agrees not tol patent shall be deemed to be owned or con-
" . bring suit under any, some or a11 of the trotted by an applicant if it is owned or United ~tat.espatents and patents issued controtled by the applicant, a subsidiary of
, o~ apphc~tlons owned or c~)Dtroll.ed by the applicant, by a person whose subsidiary sa}d apphcant or under which s~ld ap- ,the applicant is, or by a person on behalf pircant has the power to grant hcenses of whom the applicant then is acting as an
. on the date of the request by the ap- . h plicant for a license for infringement by agent Wit respec.t to the manurac~ure, use IBM arising out of the manufacture, use or or sa!e of tabulab,:,g cards,. tabulating card sale of tabulating machines or systems or machinery, tabulating machines or systems, eletronic data processing machines or or electronic data processing machines or systems of the types and models being systems or parts for such machines. Demanuract~red or u.sed by IBM in its termination of a reasonable royalty for any regular hne of busme~s on t~e date of license to IBM under this Section Xl(g) the .request by the apphcant, Without fi,rst shall be made in th~ same manner as pro-. havmg offered to IBM a nonexclUSive 'd d' S . XI() ~ d ..... f ',.. license for a reasonable royalty under VI e m ectlon e lor e.termmatlon.o 1> and for the full life of said patent or the reasonable .royalty fo~ a license gran!ed patents claimed by the applicant to be by IBM, prOVided that In any proceeding mfringed;' , for determination' of a .reasonable royalty
(2) for a license unde~ a future patent under this Section XI(g) the burden of (except a future patent relating to tabu- proof shall be on the person from whom lating cards and/or tabulating card rna- IBM has requested a license to establish
'chinery), said applicant agrees u~ request the reasonableness of the ·royalty requested ,to grant to IBM. fo~ a reasonable royalty by it.
-it, 68,245 @ 1956, Commerce Clearing House, Inc. ~.
,I
I
Cited 1956 Trade Cases 71,129 U. S. v./t1terna/jonol BusiHC.rs k fochi" u Corp.
XII . (Pot"", b1/ritTgelllcn' Slfits]
JOM is enjoined and restrained from intlilllting, or thrcatcnill ~ to institute. ,any lelion suit o r procccdlllg under Sect ions ZXI t/ seq. of Title 35. United States CO,de (11)5J), against any person for acts of 111-.
frillgcmcnt of existing patents a lleged to ' b.l\'c occurred prior to the ent ry of this Final Judgment, except by way of counter: cLaim in any action brought by ;my person l~ain5t IllM; provided, however, that such (ounl<:rclaim shall not include any claim (or infringement of any existing patent fC
bling to tabulating cards or tabulating card machinery.
XIII [License Agreem£t1/.r-[rlVtHtors]
(3) 10M is ordered and directed. to terminate upon the reques t of the li censee any elCi~tin g patent~licensing agreement which j, inconsistent with the provisions of Seclion XI of this Final Judgment and to gun! new licenses to li censees affected by Ih i~ provision upon the terms and condi~ linns spccified in Sect ion X I of this Final JUtJ~rnent.
(b) IBM is hereby enjoi ned and reitrained for a period o f five years from the tbtt of entry of thi s Final Judgment from entering into, adhering to , maintaining, fur~ Illering, or renewing, directly o r indirectly, ;"IlY (ontract, agreement, understanding, o r ;"rr.I.II~ell1cnt with any person rela tin g to 1;,,1IlIlalil1g cards, tabulating card machinery, l;"iJubling machin es or sys tems, or e1ec~ Ironic dat a processing machines o r sys tems which :
(1) grants exclusively to IBM a li cense, !iiuhlicensing ri ght, Or immunity und er ::illy patent, unl ess (A) ' I B?\.f shaH have failed in a bOlla fide effort to obtai n a noncxclusive license under such patent and (ll) such grant shaH permit IBM to grant sublicenses under such patent ;!.! required pursuant 10 Section XI; and
(2) provides for disclosure to IBM on an exclusive basis of any invention, formllla, process or technical information, other than the results of joint de~ ,"clopment programs unde rtaken by I BM and such person or work done by established research or engineering organization! on behalf of IBM. (c) IBM is hereby enjoined ' and .. re ..
.lraincd for .a period of ten years trom the '
Trade Regulation Reports " '/" ''), .'/ ·f , ,.
da te of entry of thi s Finaf Judgment from retaining any individual inventor or engineer for work o n the design and ·development of tabulating ·· cards, tabulating card ma~ ' chinery, tabulating machincs o r sys tems, or electronic data processing machines o r systems except:
(1) . as an t;mployee having regular. hours of employment, or a retired IBM employee; or
(2) under contracts for research, dc~ velopment or engineering services which commit the inventor or engineer to provide personal services for periods of not more than one year.
XIV [Tech"jcal Its /orma tion}
(a) IBM is hereby ordered and directed for the perib d of five years after the en~ry of thi s Final Judgment to furnish to each licensee under Section XI of thi s Final Jud gmen t making wrHten application therefor the techn ical information enumerated in paragraph (b) of this Section XIV .. with respect to , and for USe in the manufacture in the United S tates of:
. (1) the ~BM tabula~ing ... !f1achines li sted 10 AppendiX A of till S FlOal Judgment;
(2) tabulating cards; or (3) tabulating card machinery
manufactured by or to the order of I B~{ and used commerciall y at any time during the five years immediately preceding the datc of the entry of this Final Judgment. IBM may m ake reasonable and nondis ~ c riminatory charges for furni shing such technical information pursuant to para- .: graphs (b) a nd (c) of this Section XIV which shall no t exceed the costs to IBM
· of furnishin g it . (b) The technical information to be fur
nis hed pursuant to paragraph (a) of this · Section XIV shall cons is t of co pics o f themost current documents (including, but not limited to , schematic and detailed working draw ings , specifications of mate rial, prescribed prodllc~tion methods, and assembly drawings) employed by IBM prior to the date of the entry of th is Final Judg ment in the manufacture and assembly of such ~ abulating machines, tabulating cards, or · tabulating card machinery, but shall no t include information relating to typewriters or machines · and devices ' for controlling, measuring or recording titrll!. "tolls or pro· duction. ; i":" •... !' . ' . ' , ,:; b. ; "
.. , V 68,245
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J
_-71,130 Court Decisions U. S. v. International Bwine,ss Mocllines Corp.
/ (c) In the event that any applicant repre· the policy level, its4ginccring personnel,
sents to IBM in writing tha t the technical its employees c~16gcd in selling tabulat· info rmation furni shed by IBM is inadc- ing machines,?tabu lat ing cards and clee-quate to enable him satisfacto rily to manu- tronic data processing machines, it s patent facture or assemble the standard tOlbulatillg . li ccnscc;s"and all of it s presen t lessees , and machines, tabu la ting cards, or tabu la ting (B) .to' notify a ll its lessees that their leases card machinery covered thereby, I BM shall shall be deemed to have been modified to, supply such applicant such further ex- the extent, if any, necessa ry to conform to planation of the information supplied a9 • the provisions of this Final Judgment, and may be reasonably necessary for that / within 15 days thereafter to file with the purpose. ./ C1crk o f this Court it s affidavit affirming
xv [Allocation of Marke ts-Tic·jn Sales}
(a) IBM is hereby enjoined and re, trained from entering into, adhe ring to, maintaining, or furthering, directly or indi · rec tly and w hether inside or outside the United S tates, any cont ract, ag reement, unders tanding, plan o r program with any person engaged in the manufacture, sale, distribution or repair and mai ntenance of tabulating c·ards, tabulat ing card machinerYI tabula ting machines or systems, or electronic da ta process ing machines or sys- ' terns to :
(1) divide sales or manufacturing territories;
tha t IBM has complicd with the forcgoin g . tcrms of this paragraph (a) of Section XVI ; and (2) a t any time with in tcn years afte r 'the entry of this Final Judgment to furnish to anyonc, upon written reques t, a copy of Schedule A.
(b) IBM is o rdered a lld directed, on or before March 31 of each of the /irst ten years fol1owing the yea r in which IB M first offers machines for sale pursuant to Section IV of this Final Judgment, to fur· nish to the Atto rney General, for the pre· ceding calendar year: ·
(1) a s tatement s howin~ the sales anc lease prices effective durlllg such yca r, for each type of IBM standard tabulating
.1. and electronic data processing machi ne j .. (2) allocate markets among manufacturers; or
(2) a statement showing the number and thc aggregate point values of each class of s tandard tabulating and clec· tronic data processin g mae.hines sold . by IBM in th e United States pu rsuant to Sections I V(b)(2) and V of this Final Judgment, less the total point values of such machines reacquired by IBM, dur· ing such yea r;
/
(3) limit, restrain, or prevent the import into, or export from, the U nited States, it s terri tories and possessions, o f. tabulating cards, tabulating card machinery, tabulat ing machines or systems, o r electronic data process ing machines or systems.
(b) IBM is hereby enjoi ned and rest rained from conditioning tlte sale or lease of any standard tabulating or electronic data processing milchine (which shall in- · elude any machine unit on a separate base even if in normal usc it is mechanically or ele~trica lly connected with another such . ' machine unit) upon the purchase or lease of any other standard tabulating or electronic . data process ing machine.
XVI
[Notice of Judgment-Report to AUor1uy General]
(a) I BM is ordered and directed (I) wi thin 90 days after the entry of this Final Judgment (A) to furnish a true and com .. plete copy of this Final. Judgment to each of its officers, dir~ctors and employees at
\I 68,245
(3) a statement showing the number and the aggregate point values of ~ach class of s tandard tabulating and clec· tro nic data processing mach ines owned · by IBM and placed in use by customers in the United States, less the total point values o f such machines owned by and rcturned to I BM, d uril~g such year;
(4) a s tatement showing lhe number . and the aggregate point values of each ·: class o f tabulating and electronic datil process ing machines sold by IB?-.-1 during such year pursuant to Section IV (b)(l) of this Final Judgmen t; and
(5) a s tatement showing the number of tabulating machines acquired by IBM pursuant to paragraph (a) of Section V of thi s Final Judgment and in respect
' of each such machine resold to a dealer in second·hand business machines pursuant to paragraph (b) of Section V, its type. age, resale price and the price of a 'new machine of the same type. ,.
© 1956, Commer.ce.Clearing H~use, Inc.
I
I
. !
.,
JI~'.I-eS J.To·se
Cited 1956 Trade Cases 7.1,131 U. S. tI. IniemaiiotuJI Bwiness Machines Corp.
XVII [Inspection and Compliance]
XVIII [Disclosure of Information]
Information obtained by the means provi~ed in Sections XVI and XVII of this Fmal Judgment shall . not· be divulged by any representative of the Department of Justice. to any person other than a duly authorized· representative of such Depart- . ment, except in the course of legal pro-. ceedings to which the United States is a party for the purpose of securing compliance with this Final Judgment or as otherynse required by law.
XIX
For the purpose of securing compliance ) wilh this Final Judgment, duly authqrized representatives of the Department of Justice ahall upon request of the Attorney General or the Assistant Attorney General in charge of the Antitrust Division and on reasonable nolice to IBM made to its principal office be permitted, subject to any tegally recognized claim of privilege approved by this' Court, (a) access during the officer hours of I DM to all books,' ledgers, accounts, correspondence, memoranda and other records and documents in the possession, custody or control of IBM relating to any matters [Jurisdiction Retained] conlained in this Final Judgment, and (b). . Jurisdiction is retained for the purpose ,ubjcct to the reasonable convenience of . of enabling either of the parties to this In~( but without restraint or interference' Final Judgment to apply to this Court at from it, to interview officers, directors, any time' for such further orders and direcaftents, or employees of IBM, who may tions as may be necessary or appropriate h:l\'C counsel present, regarding any such fO,r the construction or carrying out. of this maUers. For the purpose of securing com- Fmal Judgment, for the modification or pliance with this Final Judgment, IBM· termination of any of the provisions conupon the written request of the Attorney tained herein and for the enforcement of General, or the Assistant Attorney General compliance therewith and the punishment in charge of the Antitrust Division, and . of the violation of any of the provisions ' upon reasonable notice to its principal office, . contained herein. , ahall submit such written reports with re- XX lpeet to any of the matters contained in this . Final Judgment as from time. to time may be necessary Eor the purpose, of· enforce- .
. [Prio,. Judgments]
ment ~f this Final}udgment. .. ,' . : . . ! • .' !,' I ~ •. I· ' •. , • , •• :
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The provisions of this Final Judgment shall not be deemed to have any effect on. the judfPllents enfered in this Court on December 26. 1935, and January 29, 1936, in United States fl. interMliofUll' BtIIi,.,s.r Ma-chines Corporation, II at . ..,.: .. '. :.' ...
.1 .. : •. ~: . • 1 :.,r •. I :'1·
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: . IBM StANDARD T ADULATING MACHINF.5 • -:., I • J II! .. j ,,' i •
Class,' Type '. .
Key Punch~9 '\·)I·i'I:·~ i,;' . . ~."r";) .. ;.;,',!;.,;\ 001.
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Name
Mechanical Punch Card Punch Electric Punch Duplicating Punch Motor Drive Punch
:'., ' ..
. Motor Dri.ve Duplicating' Punc"" ... Card Punch . .., ... ,.".']".~ Printing Card Punch . . Duplicating Punch .
. .Alp~a~etic Printing ~~n~~~l:)t.;r"
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Mechanical Verifier Motor Drive Verifier Motor Drive Verifier Alphabetic Verifier Verifier Verifier
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.'" .. ' : '~ . ! .•. ' ~,' , \. . . 824 '.j Typewriter Card Punch H26 Typewrit~ Card Punch ~~;>i: , !;'~I RR4' .... .; Typewriter Tape Punch ~ t· . ; \ : . tJ :
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067 068
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Numbering Gang Punch Reproducing Punch
~,' .. ~, . t Reproducing Punch Reproducing Punch . : : ':.'~ .. , Duplicating Summary Punch' Gang Summary Punch Gang Summary Punch Document Originating Machine Duplicating Summary Punch Gang Summary Punch . Duplicating Summary PUhch Printing Summary' Puncll . Accumulating Reproducer .' Ticket Converter :
:, '. ~ . . ~ Vertical Sorter Card Counting Sorter Sorter Sorter Sorter
Collator .Alphabetic Collator
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@ 1956. Commerce Clearing HOUle, Inc.
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I'" "'1\ 092· .:.'. 5-Counter Accounting Machine ,. ~ , ". '093 " 5-Counter Accounting Machine "
222 . Type III E, 5-Counter, 5-Bank , ;, ' I • ; Accounting Machine
, -:
I~ , 232 . .o... Type III G, 5-Counter 5-Bank .. ,·r " I .'" • ' '.. ','~' 'j. .' Acc(;>unting M~chine .' .:;,', " ",
• , t .,' .'. 285" Electrac Accountang Maclune" ".
•. • .... ~,r.~.~ I : I.'
',.1 . • : ...• 297. " Electric Accounting Machine . ,'." i:'4 • • \. f: : '. ; ';0; 298 't. Electric Accounting Machine .' .:. . .. , j.
I: '.'.' ':.:.'. 376,", Utility Biller "';,"i'!!i!: :. ,> :,'. -'1: 402' Alphabetic Accounting Machine . II! "'}
• .' ,-.' .. ;'! 403 '. '. , Alp~abetic ~ccou~tinL ¥a!=hine·. ·.::i .,r) • ,:.1 .; .' :,'., j':';:' " with ~ultlple Lan,e Prmtlftff ·.I!I,.;;\' . . " 404" Alphabetic Accounttng Machine <, ,;. :' ,
. 405 Alphabetic Accounting Machine " . .' I
407 Accounting Machine ' ... ': (' .. 416 Numerical Accounting Machine :.;< ,:'" 419 Numerical Accounting Machine :"~" .. ,'. 916 Bill Feed . ,: 920 . Bill Feed ... " .: .,
I, .:
., " i'
921 ... , Automatic Carriage ,,, ,,' .. I.:
922 Tape-Controlled Carriage ";'" :'" :" ':"i!
923 ". Tape-Controlled Carr~age,. . .. ; .:' 924 .Dual-Feed Tape Carriage .: .. ,', " . :" . 933 Carbon Ribbon Feed Device:·; . : ...... ; .. ,;.
. ~ ; .. ; ,I'
934 Carbon Ribbon Feed Device,' ':':,: :"'. \ : " I : t ," ~ r ." .. ,;
Calculating Punches . . ",'.' 601 Multiplier
,. .602 ... ) ',". :, .. ' 602A
,. ,I :r,"'. '"i~ 604 . : 521
, ; • J :.. ':-, , Cardatypes . . '. . ".. . 854
Calculating Punch Calculating Punch . . .. ' Electronic Calculating Punch 604 Punch Unit '
Cardatype
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lH.AIDHIO GOR.IPOR..ATJION OF AMER.JIGA lElLlEG"1l'lRl<O>NlICG G<o>MlP'<O>NJEN"1r§ AND» IIDJEWlICG1E§
LANGA8'11'lB:lR, lPIB:NN8YlL"ANIIA 178004
September 10, 1.965
Stanforci UDi vera! 1;7 Computer Service Stanford, cautornia
Attention: Professor Jolm McC~
Subject:
Gentlemen:
Jfroposal. covering the Developnent of a Hish Resolution Sensor for Computer DeVice BCA' 8 (Electron:Lc Components aud. Devices) Reference mo. »p-6137
!he Bad10 Corporation of America (Electronic Components and Bences) 1s pleased to submit its proposal. in response to recent c!1scu8sions on Au8l1st 5, 196,.
In accor4ance With the 41scu881OD8 referred to above, we are enclosins hereld. th three (3) copies each of our 9.'eclm1cal. P.roposal ent! tled, "Developnent of a BiBb Resolution Sensor for eamputer Device n, dated SepteuiDer 3, 1965, coveriDg the details of our proposal.
Our total pr:1ce on the basls ot a firm fixed price contract is $92,4ao. We nab to point out that the soals of this prog,ram are to achieve, as an o'bJeet:l:ve, the performance outllned 1D our teclm1cal proposal. S1Dce this type of tube has not herewfore been constructed we oem make DO pal'autee of complete campUauae at this time.
Oar :proposal covers the dellw17 of three units, With the first tube delivery six mODtbs after our receipt ot au executed contract coata1niD, mutuall7 acceptable terms and condi tiODS. Be rema1D1D1 twa tubes v:Lll be del1 verec1 after evaluation ot the first tube by StaDf01'4. !he total contract period for the deliverr of three tubes 1s to be twelve months.
!'he work program coverec1 'by this :program coulcl be scheduled to atvt as soon as practical atter our receipt ot aD executed purchase orc1er contain' DS mutuall.J' acceptable terms and con41tions.
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We trust that 1 t Will be aatietactol7 an4" wUl be »1ease4 to tun11ah 81W ac1d.11ilonal. 1Df'ormaUoa that 70U may require. All flUestlcma of a convactuat Datura 8boul4 be &'8f~ed to Mr. P. A. JordaDo~ area code llT~ telephODe 397-1661, EQttensl0J1 32l2" Jlmcaster, l'eDuS71'V8D1a. .w. other queSUona ehoul4 be retez.Te4 to the writer, area code 415, telephone ~996, Baa FranCiSCO, calUorm.a.
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OFFICE MEMORANDUM. STANFORD UNIVERSITY • OFFICE MEMORANDUM· STANFORD UNIVERSITY •
~j 9-I; FICE ":EMORANDUM
i.5~ •
DATE, August 30, 1965
To Deans, Department Heads and Principal Investigators
M. R . Bwna
SUBJECT, Budget Statements
2.
3·
4.
5.
6 .
It has been the practice of the Controller ' s Office to include some supporting expense documents with monthly budget statements for budget and grant acc ounts . This system has caused problems i n some depart ments . Effective 9/1/65 all supporting documents including vendor invoices ,-,ill be mai l ed from Processing, Billing and Reporting (PBR) Section separately f r om the budget statements . Depending on the volume of supporting documents the mailing may be daily, weekly or bi -weekly. This will give you an earlier opportuni ty to check your department copy of the requis i tion and per for m any other pre - s tatement matching that you may wish to do .
Statements for Budget, Contract, Grant and Student Ai d wi l l be mai l ed together .
August pay i tems that missed the payroll deadline will be charged to the August budget statements. The same item will be debited and credi ted on the September statements .
August budget statements are scheduled for mailing in September budget statements will not be issued on the schedule due to t he change i n the accoQ~ting system . September budget statements mailing ,-,ill be annoQ~ced
September 14th. regular time A date for the at a later date .
New SU forms (pl ease refer to Contr oller's Offi ce listing i ssued 8/23/65 attached) are now available in Stores . The ne" f orms should be used from 9/1/65 . No credit for old forms ,dll be given after 9/30/65 .
Beginning September 1st . please remember to use your ne" account numbers . Documents using the "old" account number series "ill not be acceptable . Documents received after 9/8/65 will be returned to the originator for r eassignment of account number if an ol d number has been used .
Encl.
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FORMS AFFECTED BY THE NEW ACCOUNT NUMBERS
The new account numbers must be used on all SU forms that affect Charges to the 1965-1966 budget. Please put account numbers on forms with spaces or hyphens between the groups of digits:
1 ABC 001 94 610 or l-ABC-OOl-94-610
There are eleven forms that are affected by the new account numbers. Seven of these have been revised and have to be ordered from Stores. The other four will be used until the present supplies are gone. Please refer to the instructions with the following lists of forms.
! Form No.
SU-l
SU-2
SU-3
su-4
su-8
SU-ll
SU-14
Form No.
SU-IO
SU-13
SU-35
su-40
ORDER REVISED FORMS
Form Name (revision date]
Appointment Notice (8-65)
Change in Status (8-65)
Leave of Absence or Termination Notice (8-65)
Overtime & Miscellaneous Payment Authorization (9-65)
Semi-Monthly Payroll Authorization (9-65)
Blanket Order Release (9-65)
Petty Cash Envelope (9-65)
KEEP PRESENT FORMS
Form Name
Purchase Requisition
Interdepartmental Request
Expense Report
Physical Plant Work Order
Controller's Office 8-23-65
Instructions
Order revised forms from stores on an Interdepartmental Request, SU-13.
Return old forms to Stores for credit. List the forms on a separate Interdepartmental Request, SU-13. Add the note: "Returned for Credit." If the quantity is too large to return by campus mail, make a further notation, "To be picked up by Stores." No credit can be given for forms returned after 9-30-65.
Instructions
The new 12-digit account number will fit in the space marked "Account Number."
Do not use spaces marked "Expense Code, If "Object Code," lor "Salary Code."
to ARPA for Research in Artificial Intelligence
from
Project Director John McCarthy
Professor of Computer Science
12 Months
January 1, 1963 to December 31, 1963
C~mputer Science Division Stanford University Stanford, California
November 19, 1962
TABLE OF CONTENTS
10 Introduction 10 20 Theoretical Research 10
10 Heuristics 10 20 Forma.lization of Problems in an Extended
Predicate Calculus 20
30 Mathematical Theory of Computation 20
30 Experimental Activities 30 10 The LISP Programming System 30 20 Game Playing Programs 30
30 Proof Procedures in the Predicate Calculus and a Proof Checker 40
40 Time-Sharing 40
50 Other Artificial Intelligence Work 50 4. Practical Applications of Research in Artificial
Intelligence- 541 10 Defense Planning 5. 2. Military Robots 6.
5. Personnel 110
6. Facilities 120
70 References 130 8. Budget 140
90 Cognizant Personnel 150
not defeat good human players, the incorporation .of the a~ - heuristic gave a program that defeats the best players we cO'uld find. This was not the case with chess. Although the a~ - heuristic and certain others give a chess p~ogram that is probably better than any other chess program so far produced, it requires the odds of a queen in order to have a reasonable chance of defeating an expert. This is because playing chess makes more use of human intellectual abilities than does playing Kalah. The deficiencies of our program provide powerful clues to the identification and precise description of these abilities.
The results on chess and Kalah to date will be described in a forthcoming paper.
3. Proof Procedures in the Predicate Calculus and a Proof Checker As a preliminary to developing a general program for
solving problems expressed in a generalized predicate calculus we are studying decision methods for solvable parts of the predicate calculus.
We are also working on a program for checking proofs by machine. This may have large practical applications and provides a way of combining the capabilities of man and machine. See the paper "Checking Mathematical Proofs by Computer".
4. Time-sharing In order to achieve the close man-machine interaction
required for work in artificial intelligence, (the best results in Kalah were obtained when the computer could be used to confirm lines of play proposed by a human player), the time-shared use of a computer with appropriate languages for communicating between man and machine is required. Some work in this area is described in "TimeSharing Computer Systems lf and in the forthcoming paper
4.
..
~
Experimental Activities
1. The LISP Programming System The LISP programming system for computing with symbolic
expressions has been operating since 1960. It has been used for research programs for theorem proving, for symbolic differential integration and algebraic simplification, for quantum mechanical calculations (by McIntosh), for: compiler writing, for psychological simulation (Hunt) and for many other purposes. It is intended as the main tool in the formal language programming which is to be described. We intend to make improvements to the present LISP 105 system and perhaps to make a start on LISP 2. Previous work in this area was reported in KRecursive Functions of Symbolic Expressions ••• " and in the "LISP Pr.ogrammerls Manual"o
/ 2 • Game Playing Programs
Game playing is one of the most observable and analyzable activities of human intelligence. In order to learn to play.chess well a person must use his abilities to recognize patterns, to make and apply generalizations, to avoid irrelevant lines of thought, to evaluate the various alternatives open to him, to form subgoals subordinate to his main goal of winning the game, and to perform other activities which we have not yet succeeded in identifying. We concentrate much of our attention of programs for playing games for the same reason that the geneticist studies neurospera; phenomena of general interest are most readily observed in these special situations.
At present only a few of the capabilities that we . know humans use to play ga~es have been incorporated in programs. For ·some games, this doesn tt matter very much, and the speed of the computer enables it to defeat human players. Our program for playing the African board game of Kalah is a case in point. While the first versions could
Techniques ror reducing the size or such searches may be called heuristics. They include pattern recognition used to identify problems for which certain methods are appropriate, analysis into a collection of simpler subproblems, learning from experience, planning whereby an abstracted problem is solved first and serves as a guide to the mare complicated problemo
We are attempting to isolate these techniques and fit them into a general framework 0 Minsky has discusSed these techniques generally in "Step Towards Artificial Intelligenceo lf
20 Formalization of Problems in an Extended Predicate Calculus
This is our main approach to the artiricial intelligence problem 0 In order that a computer program should be capable of learning from its experience, it must be able to represent any facts or procedures it is expects to learn 0
Arbitrary theories can be formalized in the predicate calculus and, therefore, we are planning a program that will be able to make deductions from collections of sentences expressed in an extended predicate calculus o A preliminary approach to this problem is described in "Programs with Common Sense", but more theoretical work will be required before we are ready to write programso
30 Mathematical Theory of Computation
In order for a program to be able to improve its procedures, they should be represented in a ~orm in which their properties are readily established. This provided the motivation from the pOint of view of artificial intelligence for the work ·on the mathematical theory of computation, some results of which are reported in If A
Basis for a Mathematical Theory of Computation" and ~owards a Mathematical Science of Computation." Further studies will be carried out.
Research on Arti:ricial Intelligence
The Computer Science Division or the Mathematics Department or Stanrord University proposes to carry out research in artiricial intelligence and related areas.
The project is to be directed by Proressor John McCarthy and is in part a continuation or his previous work at M.I.T.
Introduction
Our basic research objective is to understand intelligence well enough to make machines behave intelligently. Complete success would result in and would require a theory or what constitutes intelligent behavior, but at present such a theory seems a long way orr.
However, we can isolate a number or problem solving techniques and see how well they do when applied to various problems which require intelligence ror human solution. The results or such experiments assist in isolating further aspects of intelligence.
The planned research can be divided into theoretical and experimental activities. We shall first discusS the proposed research and then its bearing on defense problems.
Theoretical Research
I. Heuristics Many problem solving activities -can be regarded as
searches in a large space of p.ossibilities ror an element that satisfies a certain condition. The spaces are usually too large for direct enumeration to be successful and the criterion that an element has to satisry to be regarded as a solution may itself be very complicated to testo
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describing the time-sharing system for the PDP~l computer. At present, we and other workers in artificial intelligence in the Bay Area are discussing a plan for a computer especially adapted for artificial intelligence work. Such a machine would require a very large core memory and typewriter'+ CRT consoles for interaction with its users o If such a facility is reserved for research work requiring its characteristics, it can be built at a reasonable costo
50 Other Artificial Intelligence Work Other projects in artificial intelligence that may
seem appropriate will be undertaken. If our experience at MgIoT. is a guide the projects undertaken by students will be many and varied.
Practical Applications of Research in Artificial Intelligence
There is no reason why it will not eventually be possible to make computer programs more intelligent than human beings. Given this, the long range usefulness of research in artificial intelligence is obvious. We shall, however, belabor the obvious a little and mention some possible futuristic defense applications and their relation to some more immediately feasible applications.
I. Defense Planning. If we could apply more-thanhuman intelligence to our security problems we would be more likely to achieve our national goals without war (and so would the Russians). It is not easy to see what form artificial intelligence for defense planning would take, but it surely will not take the science fiction form of a machine that gives cryptic answers to badly posed questions. Instead of this, we will use the machine to increase our own understanding of the problems, and if it were smarter than ourselves it would have to figure out how to teach us what it knew.
2. Military Robots The idea of. making machines take the risks and suffer the casualties.of war is attractive. Again a science fiction view of what this would really be like is .to be avoided. For example, instead of the robots resembling men in shape and mutual independence, they would more likely be specialized as to function and would have their actions co-ordinated by a central processor physically distinct from them.
What of the present? What are the present applications of research in artificial intelligence? Bluntly, they are few but not non-existent.
Primarily, the work in trying to make machines solve problems requiring intelligence in humans can help delimit what computer based systems are feasible in the present state of artificial intelligence work and which are not.
For example, it is feasible to have a computer optimize the values to be assigned to a set of numerical parameters, provided there are not too many parameters and provided the hill constituting the optimum setting is flanked by smooth slopes. Suppose, for example, that our planes were fighting enemy planes, that the enemy armament
·was in part unknown, and that one parameter was the distance from the enemy at which our planes were to launch their rockets. A program that was part of the general command-and-control system might adjust this parameter so that in a few hours after combat began it would have an optimum value that in the normal course of events might not be attained for months. Moreover, once the value was established the system would be able to monitor it continuously and change it when it needed changing.
On the other hand, at present one cannot expect computers to invent and recommend qualitative changes in tactics unless the possibility of these specific changes had been anticipated. Thus, it will not occur to the
machine to examine the possibility that the enemy antiaircraft missiles distinguish between our planes and theirs by amounts.or infra-red emission and that ir we incorporate in our planes a device with a variable infra-red emission and a learning program we can learn to confuse their missileso
It should not be supposed that the inability to invent new tactics is a fundamental limitation of computer systemso It is a state-of-the~vart limi tation, but one that will not quickly be removed o The work we have done and propose to continue on the Advice-Taker problem will help reduce and eventually remove these limitationso
It is easier to illustrate ideas for reducing these limitations in connection with a problem like chess which has a very concrete form than in connection with military problems 0 Moreover, it will be much more difficult to test an idea that is supposed to make a military system more intelligent than it is to test the same idea in connection with a chess program 0
Our chess program, like the others that have been made, has a number of parameters that determine its behavior (such as the numerical value assigned to getting a passed pawn), and it would not be difficult to get a program to Jearn to adjust these parameters to optimal valueso (It is not so easy to make it adjust them quickly)
However, we can imagine and propose to program another form of chess learning o We shall define a configuration of pieces as a relation between them like::"wl attacks bIn and "bl is undefended" and "bl makes an attack by wI on b2" and "black cannot capture wI" and "black cannot safely interpose between wI and bl" and "black cannot defend bl" and "black cannot move to bl so as to attack white" and "black has no other move that attacks white" 0 Such a relation involves a limited vocabulary and
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a l i mited number of ways of combini ng thi s vocabulary into
descriptions of situations . It is possible to contemplate a computer program that can general i ze particular board positi ons to give these abstrac t configurations and then
look for these configurations in other situations. There are probably a number of pitfalls in making this work , and only when programs that invent configurations have been made
to work in well - defined situations like chess will it be
reasonable to apply the idea to defense problems. The Advice -Taker program discussed in "Programs with
Common Sense" is intended to solve the problem of generality.
The language of the first-order predicate calculus seems to
be adequate for describing any entities that we can invent.
To use it effectively we need descriptions of situations in
predi cate ca l culus and a procedure that can introduce new symbols f or individuals and relations and formulas relating
the new entities named by t hese symbols to our previously defined entities. Four years after writing the paper
proposing programs with common sense, the task stil l seems
immensely difficult, but some subtasks have been isolated,
and it still seems necessary to solve t he problem.
While we will not be able to trust machine systems
to behave intelligent ly in the near future, we can hope to
be able to re - inforce combined man -machine systems wi th any intelligence we can program. Thus , we may not be able to trust t he machine to produce an optimal plan in a given
situation, but we may be able to ask the machine what will happen if a given plan is adopted. The answer does no t
have to be ac cepted uncritically because not all relevant aspects of the situation will be examined by the program .
Nevertheless , it is s urprising how much we humans tend to miss thata diligent program finds. Our chess program
whi le not very good as a whole often finds lines of play
that ordinary amateurs miss, and a class B player would
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probably find it useful as an advisero On the other hand, we can ask the computer to propose
courses. of action and if the resulting analysis doesn't take an important factor into account, we can ask it to investigate certain alternativeso Our Kalah program tends to get stuck on certain lines and we can help it out by suggesting alternative winning lines o
We expect the Advice-Taker program to make possible a break-through in the area of using machines as advisers o The language for man-machine communication, namely the predicate calculus, is capable of expressing concisely any facts that have to be communicated, and we hope that our deduction routine will be good enough so that any really obvious consequences of what we tell the machine and what it already knows will be generatedo
Suppose, to take another military example, that we have an Advice-Taker program for proposing attack plans, but we notice that it does not take into account the difference between moonlight nights and otherso We type a predicate calculus formulation of the statement "if the night is moonlit the enemy can see us at 200 yards, otherwise at 50 yardso" The program types back "How can I tell if a night is moonlit," and to this one must give a reply telling how this depends on the position of the moon and the weather 0 Perhaps, the simple concept of moonlit proves inadequate and we have to replace it by a new concept of "visibility distance" which depends on a
number of factors o Perhaps in the middle of this the computer types back that visibility distance doesn't matter in this case because the enemy will detect us early in any case and can light up the area with rocketso
The point is that the Advice-Taker will for the first time permit the introduction of new concepts to a program without reprogramming 0
In summary, th~ work we propose .to perform on artificial ~ntelligence .is basic research, but it can p~ovide a guide on what we can and.cannot now· make computers do either. by themselves or in combined man-machine systemso The future progress of the·research will help reduce these limitations.
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Research in Arti~icial Intelligence
Personnel
The project will be directed by John McCarthy who is Pro~essor o~ Computer Science. He was born in 1927, received BS and PhD degrees in mathematics ~rom Cal Tech. and Princeton respectively in 1948 and 1951. Since then he has been on the ~aculties of Princeton, Stanford, Darthmouth, and M.I.T. His work in artificial intelligence started in 1949 and is represented by those re~erences that have his
name. Mr. S. R. Russell, a programmer who worked on the
LISP system and Mr. Michael Levin, a graduate student in mathematics who also worked on the LISP system have come with Pro~essor McCarthy to Stan~ord ~rom MoloTo
Harold V. McIntosh o~ the University o~ Florida Quantum Theory Project will be visiting the Artificial Intelligence Project and participate in our work during the spring quarter of 1963. His interests are in the area of symbolic calculations for quantum chemistry and mathematical physics.
The Computer Science Division presently awards a master's degree and expects to start a PhD program in the near ~uture. Work in numerical analysis and in programming languages is well established and a number of students have signi~ied their interest in arti~icial intelligence by attending meetings o~ the Stanford A~ti~icial Intelligence Group and by enrolling in a three quarter course in computing with symbolic expressions, mathematical theory o~ computation, and arti~icial intelligence. It is still too early to tell how many o~ them will decide to concentrate in this ~ield.
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Facilities
The Computer Science Division at Stanford is just about to move into a new building large enough for a ·considerable expansion of its staff and research activitieso The Stanford Computation Center has a Burroughs 220 computer and an IBM 7090 computer and has placed an order for a Burroughs B5000 computer 0 We also plan to acquire a Digital Equipment PDP-I computer for research and teaching in the area of man-machine interaction and interaction with laboratory equipmento
The research covered in this proposal will involve the IBM 7090 computer for which we have the LISP programming system and the PDP-I computer. Included in the budget of this proposal are charges for computer time on these computers and also the cost of connecting them to each other. The main purpose of the connection is to allow us to communicate with the LISP system and the large memory of the IBM 7090 while the typewriter and CRT display features of the PDP-lo The connection will greatly reduce the amount of expensive 7090 time required compared to a system in which the typewriters are connected directly to the 7090.
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Budget January 1, 1963 to December 31, 1963
Salaries and Wages John McCarthy, Project Director .2/3-time acado yr. and full time "'S-ummer··Quarter, acado sal .. ,$14,000. ,$ 14,000 ..
Four graduate Research Assistants part time during acado year, full time Summer Quarter, at %5,000. 20,000.
Two visiting appointments for short periods 15,000 ..
Two programmers, full time at ~8,500. per annum 17,000.
Secretary, full time 5,100.
Total salaries and wages ~ 71,100.
Staff Benefits (5.% of salaries and wages) 3,555.
Computer Time, 200 hours on 7090 at ~200 per hr.
Connection of PDP-1 computer to 7090
Computer Time, 500 hours on PDP-1 at ~40 per hr.
Travel
ConSUltants
Expendable materials and supplies Total Direct Cost
Indirect Costs (43 per cent of salaries and wages Total 12 Months Budget
40,000.
10,000.
20,000.
2,000.
3,000.
1,200.
,$150,8550 30,573 ..
$181,428.
Cognizant Personnel:
For contractual matters., including overhead and patent questions:
Dro Richard Axt, Research Administrator Controller's Office Stanford University Stanford, California
Telephone - Palo Alto, California DAvenport 1-2300, Ext 0 2883
For Technical and scientific matters:
Professor John McCarthy Computation Center Stanford University Stanford, California
Telephone - Palo Alto, California DAvenport 1-2300, Ext 0 2312
For administrative matters, including detailed accounting problems, questions relating to the budget, property acquisition and handling, etc.:
Mr. Robert J. Langle Associate Director Applied Mathematics and Statistics Laboratories Stanford University Stanford, California
Telephone - Palo Alto, California DAvenport 1-2300, Ext. 2203