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The following article appeared in the Canadian financial newspaper "The
Financial Post", August 5, 1995, and concerns computer security and Windows
95 (It is being reprinted *without* permission):

MOTOROLA ORDERS HALT ON WINDOWS TESTING

Security on Microsoft software system still to be finetuned

By KEITH DAMSELL, Vancouver Bureau, The Financial Post

Motorola Canada Ltd. has issued a stern warning to its employees to stop
testing Microsoft Corp's. new software system Windows 95.

   In a July 28 memo from Motorola's information security department, the
company's wireless data group in Vancouver was told to refrain from
connecting to the Microsoft network.  In addition, all purchase orders for
the highly publicized new version of Microsoft's popular Windows operating
software have been stopped until security issued are resolved.

   At the heart of the concern is the registration wizard, a high-tech gadget
included with each test copy of Windows 95.

   Through the telephone line, the wizard connects the user's computer to
the Microsoft network, creating a window between the user and Microsoft. 
While this allows the user access to Microsoft's network and data base, in
theory, it also gives Microsoft access to the user's internal networks,
harddrives and company files.

   Microsoft contends that the wizard connection will mean better customer
service, quicker access to information and faster solutions to computer
glitches, and, ultimately, the ability to better market products to meet
user's needs.

   Analysts and competitors say that Windows 95 allows Microsoft to
eavesdrop electronically and potentially use the information as a marketing
tool to sell its software.

   "We consider this a very serious situation," Motorola Canada's internal
controls co-ordinator Tim Askeland noted in the memo.

   According to his memo, Motorola --- which manufactures computer hardware,
software and semiconductors  ---  plans to investigate Windows 95 and
publish a report on its findings.

   "It is a very big concern that the registered wizard is collecting
information," said Stephen Graham, vice-president of software research at
Toronto-based research firm International Data Corp.

   "There's the suggestion that the wizard can check and scan and see what's
there," said one software company official who works closely with Microsoft
products.

   "From  the perspective of an IBM, I would be concerned."

   Alex Baluta, analyst with the Vancouver office of Marleau Lemire Inc.,
said he's surprised there's been little outcry about how the wizard
application of Windows 95 works.

   "Corporations are quite confused," Baluta said.

   However, Microsoft contends that the wizard's potential power will not be
used to interrogate computer systems.

   "It's an incorrect assumption," said Microsoft spokesman Bill Schneider,
adding that all users will have the option to disconnect or join the
network.  Microsoft has yet to receive any security concerns from customers,
he said.

   Motorola officials refused to comment on the memo or security issues.

   The issue could have far more serious ramifications than another
controversy swirling around Microsoft's new product, Graham said.

   In a separate case, the U.S. Justice Department is investigating claims
by Microsoft's competitors that the company will have an unfair advantage
because of the expected popularity of Windows 95 and the resulting use of
the Microsoft Network.

   While the U.S.federal government's investigation has attracted
considerable attention, many potential Windows 95 users are unaware that the
little-understood Microsoft network link may give the company "a real leg up
on the competition," Graham said.

   Analysts expect Windows 95 to sell 30 million copies or more in the first
year at about US$100 each.  Users will be billed for their time on the
network.

---
  Steve Pershing <sp@questor.org>

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