.ffam NS
.ps 12
.vs 14
.sp 12
.ta 4.5i
.nf
June 10, 1992	Press Contact:
	Donnalyn Frey (703) 764 9342
.sp 2

.fi
USL has filed a complaint against BSDI in federal court in New
Jersey alleging false advertising in violation of Section 43(a)
of the Lanham Act and unfair competition in violation of state
laws.  The basis for the complaint is stated to be that BSDI's
promotional materials are allegedly false and misleading in
stating that no license from AT&T is required for the BSD/386
product or indeed for any product derived from the Networking
Release 2 from the University of California.

The parties are now engaged in the process of requesting
information from one another and responding to the other's
request.

BSDI has also filed a motion to dismiss USL's claims of false
advertising and unfair competition.  This motion is based upon
USL's failure to allege any basis for its allegation that the
statements made by BSDI are false.  USL has not included any
claim, for example, for violation of any proprietary rights (such
as patent rights, trade secrets, or copyrights) based upon
distributing the BSD/386 product without a license from AT&T. 
BSDI contends that the reason USL has not done so is that it has
no proprietary rights to violate with respect to the Networking
Release 2 and products derived from it.  BSDI argues that absent
an infringement of USL's proprietary rights, the statements made
by BSDI could not be false or misleading.  Thus, USL's complaint
is defective in that it has failed to give BSDI fair notice of
its claims and the grounds upon which they rest.

The complaint also requests a temporary restraining order and
preliminary and permanent injunctions in connection with an
allegation that BSDI has infringed USL's trademark rights in the
word, UNIX.  The demand for a temporary restraining order has
been withdrawn as the result of a partial settlement of the
trademark issues.