Sun Microsystems
2550 Garcia Avenue
Mountain View, CA 94043
415 960-1300
415 336-0630 fax
March 9, 1995
Kathleen Carson
Federal Bureau of Investigation
11000 Wilshire Boulevard, Suite 1700
Los Angeles, California 90024
Re: Sun Solaris 2.x
Dear Ms. Carson:
As you are aware, Sun Microsystems, Inc. experienced a break-in of
its computer systems located in our Los Angeles office on or about
June 30, 1993. During the break-in, a substantial portion of the
source code of Sun's Solaris 2.x software product was apparently
copied and removed.
Solaris software is a UNIX-based product originally licensed by
Sun from AT&T.; In March of 1994 Sun bought out its original license
with AT&T; with a lump sum payment of more than $80 million. In
addition, Sun has invested very heavily for more than ten years in
the continued development of the Solaris software and values the
current product in the hundreds of millions of dollars.
Sincerely,
Lee Patch
Vice President, Intellectual Property Law
LP/kl
Enclosure
------------------------------
NEC America, Inc.
1555 W. Walnut Hill Lane
Irving, Texas 75038-3796
Tel. 214-751-7000
March 9, 1995
Special Agent Kathleen Carson
Federal Bureau of Investigation
U.S. Department of Justice
11000 Wilshire Boulevard #1700
Los Angeles, CA 90024
Dear Ms. Carson:
Please be advised that the software stolen from NEC America, Inc.
and its affiliates involves the software design for a NEC cellular
mobile telephone and is valued at one million seven hundred fifty
thousand dollars ($1,750,000.00). The value is based on the
development costs for the stolen software.
Please contact me if I can be of any further assistance.
Sincerely,
Yutaka Ichikawa
Vice President & General Manager
Communications Terminals Group
------------------------------
Nokia Mobile Phones
Ilkka Roman
Deputy Security Manager
P.O. Box 86
FIN-24101 Salo
Finland
Telefax: +358 10 505 4303
Telephone: +358 10 505 5153
Mobile: +358 40 501 3773
To: FBI Los Angeles
Attn: SA Kathleen Antena [sic]
CC: Mr. Urho Ilmonen, Vice President, Legal
Fax: +1-310-9963836
Date: Sep. 20, 1996
Subject: ESTIMATED VALUE FOR SOFTWARE ASKED TO BE SENT
PRIVILEGED AND CONFIDENTIAL
Nokia Mobile Phones was requested and tried to be mislead in early
1994 to send whole material of HD760 project on magnetic tape from
Oulu to US as guided by the requesting person. We have estimated
the value of the asked material to be:
2.5 M FIM
which is according to the current rating (1 US $ = 4.48 FIM)
560,000 US $
This estimation is based on amount of work done to create the
material of that project plus additional overhead caused by type
approval and other featured necessary to finish the product.
v
Ilkka Roman
NMP Security Deputy Security Manager
------------------------------
NOKIA Mobile Phones (UK) LTD
CONFIDENTIAL
Ms. Kathleen Carson
Special Agent
Federal Bureau of Investigation
11000 Wilshire Boulevard
Los Angeles, CA 90024
USA
February 23, 1995
Dear Ms. Carson:
Regarding your telephone request of 21 February 1995 asking for
Nokia to put a value on the costs of the software stolen, together
with an estimate of the costs of the disruption, I have provided
initial estimates of them for you as detailed below:
A rough estimate of the development costs of stolen software and
tools, including testing is US$ 7.5 Million.
The disruption to the Nokia Mobile Phones development community
caused by the incidents resulted in our local networks being
completely closed for a week and the external networks closed for
one month.
Lost development time is estimated to have cost the company US$
7.5 Million and probably a further US $120 Million in lost revenue
due to new developments being delayed in reaching the market.
There are some costs of disruption to our other divisions, Nokia
Research and Nokia Telecommunications, I have not yet been able to
ascertain estimates for those divisions. These could be provided in
due course.
This would lead to a minimum loss estimated to total US $135
Million. I hope that this information satisfies your needs.
Yours sincerely
John A. Talbot
Vice President of Engineering Support Centre
------------------------------
NOVELL
February 23, 1995
Cathleen Carson
(Via Fax 310-996-3359)
Special Agent FBI
11000 Wilshire Blvd
Suite 1700
Los Angeles, CA 90024
Dear Special Agent Carson,
Novell is greatly relieved that Kevin Mitnick has been
apprehended. As you know, several types of source code were taken
by Mitnick. To attach a value of the source code taken is a very
difficult thing to do, given that Novell's revenues exceed
$2,000,000,000/year. However, the cost associated with the
development of the source code is well in excess of $75,000,000.
A more precise number would require additional research. If you
have any questions, please contact me at 801-429-7888.
Sincerely,
Edward L. Morin
Corporate Security
------------------------------
Fujitsu
February 22, 1995
VIA FACSIMILE 310/996-3359 & U.S. MAIL
Kathleen Carson, Special Agent
Federal Bureau of Investigation
11000 Wilshire Boulevard
Los Angeles, California 90024
Re: Kevin Mitnick
Dear Kathleen:
Congratulations on the arrest of Kevin Mitnick. Pursuant to your
request, I asked our Cellular group to assess the damages caused to
Fujitsu Network Transmission Systems, Inc. ("FNTS") by Mitnick's
theft of the source code for the PCX telephone. The information
provided to me is as follows:
Software development expenses... $1,100,000.00
Research & development expenses.. 1,000,000.00
Total... $2,100,000.00
Additionally, attached is a worksheet showing what it would (will)
cost FNTS to recall the PCX phones in the marketplace if the source
code has been compromised or is not safe. Please call me at (214)
479-2931 if you need further information.
Very truly yours,
Melanie W. Scofield
Corporate Counsel
MWS/lm
Attachment
cc: George Banash
To: Nobuo Yamamolo PCX Recall Cost Analysis
COMPANY CONFIDENTIAL
Yoichiro Fujino
DO NOT RELEASE
PCX Recall for Software Rework
COST ITEMS-
DESCRIPTION PRICE COMMENT
REFERENCE
Shipping $17.31 Fed. Exp.=$7.50 X 2 + $2.31 (PACKAGE)B5
Pre-check $4.00 Bench test to confirm operational
status - 6 min. B6
Labor to upgrade software $8.50 15 min. $ 34.00 per hour B7
QC Cost $4.00 After repair QC check - 6 min. B8
Packing & Handling labor $6.40 Overhead cost to unpack & pack
and ticket - 9.6 min. B9
Customer Handling $15.00 Dealer, FASC, End-User
Compensation B10
PCX Admin Overhead $2.00 Mass Mailing, Accounting, Repair
Admin., Misc. B11
TOTAL $57.21 Total Cost per Recall Unit
SUM(B5:B11)
GRAND TOTAL $5,517,389.61 Total recall cost for 96,441 unit
population
Recall for source code rework. Based on population through
December 1994.
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