U.S. V. INTERNATIONAL BUSINESS MACHINES CORPORATION (69 CIV. 200 S.D.N.Y.)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00514R000100170006-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 15, 2016
• Document Release Date: January 6, 2004
• Sequence Number: 6
• Publication Date: April 4, 1972
• Content Type: MF

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4R0001
DD/S&T#10
4 April 1972
MEMORANDUM FOR: Deputy Director for Intelligence
Deputy Director for Plans
Deputy Director for Science and Technology
Deputy Director for Support
Inspector General
Director of National Estimates
Director of Planning, Programming and Budgeting
SUBJECT: U. S. v. International Business Machines
Corporation (69 Civ. 200 S. D. N.Y.)
REFERENCE: Memo fr Chairman, IP Board, to Directorate
IPC's, Subj.: U. S. v. IBM, dtd 17 Mar 72
1. In the subject case, the Government charges IBM with
monopolization or attempted monopolization of the general purpose
digital computer in violation of the Sherman Act. At the request of
defendant's counsel, the Court has ordered the United States to produce
certain documentation to be inspected by them. This Agency is among
the several agencies that are subject to the order.
2. After discussing this matter with the Department of Justice,
at which time it was pointed out that compliance might infringe on cer-
tain statutory exemptions granted to the Agency by law, it has been
determined that a search for the documentation covered by the order
must be undertaken. Justice has been advised, however, that we must
reserve judgment regarding what documents can be made available for
inspection by counsel and under what conditions.
3. Attached are three schedules that have been prepared by
Justice in accordance with the Court order. Schedule 1 (Tab A) sets
forth a list of instructions. Schedule 2 (Tab B) describes the docu-
mentation covered by the search. S DbIS&I b C) identifies the
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various agencies subject to the order. You will note that the documen-
tation sought covers the period 1 January 1961 to 1 January 1972, and
that the participating agencies must have completed this search by
15 April 1972. Accordingly, it is requested that a search be under-
taken immediately of the appropriate active files in the Headquarters
area. As indicated below, a survey is to be made of the inactive files
maintained by the Records Center.
4. The active files in the Headquarters area are to be physically
searched. Documents found responsive to Tab B are to be withdrawn
from the file and separated into three categories: (a) unclassified,
(b) third party proprietary data, and (c) classified. All classified data
will be further separated into three subcategories: (a) secret and below,
(b) top secret, and (c) codeword. The documents will then be listed by
categories. Copies of such listings must reach the General Counsel
prior to 15 April 1972. As regards documents containing proprietary
data, arrangements will be made by Justice to have this material
inspected by counsel under protective orders prohibiting further
disclosures.
5. It is not necessary at this time to search for pertinent docu-
mentation stored at the Records Center. Justice has agreed to treat
such materials as being "stored documents" as defined in paragraph 4
of Tab A. However, control schedules of documents retired to the
Records Center must be reviewed and Records Center holdings which
appear relevant to Tab B must be identified. Inactive files identified
as potentially relevant will then be listed. This list should show the
general nature of each file together with its overall classification and
estimated volume. Copies of such listings must reach the General
Counsel prior to 15 April 1972. No further action regarding inactive
files is required at this time.
za W_. F.- P04
W. E. Colby
Executive Director -Comptroller
Attachments
Tabs A, B, & C
DISTRIBUTION:
1 - Each Addressee
1 - ExDir-Compt
1 -ER
1 -OGC
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Schedule 7'
All documents responsive to Schedule 2 found in the'
files of those specified offices within your agency
which are set forth on Schedule 3 are to be made
available to IBM for inspection and copying.
? , A. The search or the files and records or your agency
must be completed no later than A ril J.i2.z, so
that we can arrange for the immediate inspection by
? IBM representatives of the documents or copies
thereof.
Before examination of any files is undertaken, it is
requested that you ascertain whether there are par-
ticular paragraphs of Schedule 2 that are more
susceptible to immediate search and results than
are other pararaphs. If. it be your conclusion
that, some priorities in search by paragraphs of
Schedule 2 will yield documents which can be made-
available to IBM representatives for inspection at
a date or dates earlier than April ?1.5, 1972, please
make your assignments on that basis and advice us
as to the availability of such materials a: soon as
they are located, so that we can arrange for IBM
representatives to begin their review of documents
prior to the April 15 date wherever.possible.
You will note that the Schedule 2 calls for documents
dated, issued or published during the period January 1,
1961 to January 1, 1972. Where your personne). find
'that documents falling within the subject matter of
Schedule 2 have been sent to storage under routine
Government document procedures, it is requested that
'you advise us in writing as to the location, descrip-
tion and estimated bulk of such materials. Please
do not undertake the search of such stored files in
the first instance unless the search of all files,
current and stored, can be completed by the April 15
date.
5., As to any documents selected from agency files in
response to Schedule 2 that are classified, or
contain classified or proprietary materials, it is
requested that these sensitive documents be segre-
gated from the non-sensitive ones.- Arrangements wil
be-made for inspection of these documents by IBM 17
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reprc,entatives having appropriate security
clearances, and under.such conditions that the
rights of the Government and third parties to
,be protected against breaches of security or
dissemination of sensitive materials can be
fully protected.
Any questions you may have as to your agency's
compliance with this-Court order should be
addressed to Edward R. Kenney (Code 187, Exten-
sion 24 17),,Antitrust Division Ti. S. Department
of Justice, Washington,' p., C. 10530.
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 Schedule 2
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In interpreting each paragraph of this schedule, the
following definitions shall apply:
Com e;itor/Cow etition: Competitor and co tits
m
p
e
includc.n
e past, present- an potential competitors and
competition.
of entering, receiving, storing, classifying, computing
and/or recording data, which system includes at least
.one central-processing unit and one or more storage
facilities, together with various input and output
equipment.
Documents requested herein shall be those dated,
issued or published from January 1,;1961 to January 1,
1972.
Electronic Data Processin--S stem: An electronic
Documents To Be Produced
1. The following documents concerning any supplier
:of any electronic data processing system:
(a) analyses, appraisals, studies, reports or
surveys relating to the relative strengths".-or weak-
nesses of that supplier in any segment of the elec-
.ironic data processing industry, or the relative
,growth, profits or position of.that supplier in
of autoinatical
y intercommunicating machine units capable
data processing system cons sts of a machine or a group
'l
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Electronic Data Processing Product or. Service: Elec-
tronic Data Process n~ Product or Service nc u es any
product or bervice wh?ch is peculiar to and an integral
part of an electronic data processing system.
Su lien of Any Electronic Data Processing Product
or Service:-
erv ce: Supplier o ' Any Electronic Data Processing
Product or Service includes each person, including the
United States, which supplied or supplies or has offered
to supply any electronic data processing product or
service.
.such industry;
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(b) analyses, appraisals, studies, reports or
surveys relating to the history of any such supplier
in any segment of the electronic data processing
industry, including its cntry.into or exit from any
part of that industry and any barriers, deterrents
(or the lack thereof) to s'uchi entry or exit.
2. All analyses, appraisals, 'studies, reports or
surveys relating to any electronic data processing system,
or basic major part thereof, which relate to:
(a) any evaluation thereof, including the
history, life span, availability, performance or
.specifications olf such products (but excluding
mechanical, maintenance and day-to-day performance
? matters);
(b) any comparison involving, or competition
between, any such product and any other product;
(c) the number, kind or variety thereof
available;
(d) any substantial technological change in
or. cancellation or withdrawal thereof.
3. All analyses, appraisals, studies, reports or
surveys relating to the procurement or use of any elec - /
tronic data processing system, or basic major part
thereof, by any customer including any governmental
agency with respect to:
(a) the organization, management, evaluation,
selection, transfer or disposal of such product by
..such customer;
(b) the capacity or willingness, or lack
thereof, of any such customer to purchase or lease
any such product from any supplier or to itself
make, perform or supply any such product thereof
instead of or in addition to its existing or then
existing supplier;
(c) the ability or capacity or lack thereof,
of any such customer to use, evaluate or select
among,.or to transfer or dispose.of, any such product;
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(d), the prices, terms, or conditions for any
electronic data-processing product offered, nego-
tiated, considered, sought, accepted or rejected
by any such customer.
4.' All analyses, appraisals, studies, reports oe
surveys relating to any electronic data processing
product or grouping thereof which show or tend to show
the market or segment of-commerce in which such products
compete including, but not limited to:
(a) the existence of a,definable "market",
"submarket" or "part" of commerce in which such
products compete;
(b) the identity or nature of any product,
service, supplier, purchaser or customer therein;
(c) the nature, extent or effectiveness of
competition therein;
(d) the relative or absolute position of any
supplier therein;
(e) any market power-of any supplier of any
electronic data processing product or service
therein;
(f) any acquisition or maintenance or any
attempt or intent to acquire or'maintain market
.,power therein;
(g) any possibility or probability that any
supplier of any electronic data processing product
%or service might or may injure or destroy competi-
tion therein or acquire or maintain any market
.power therein;
(h) any act, policy, practice, course of
conduct,' dealing or transaction which might
accomplish or contribute to the injury or-destruc-
tion of competition or the acquisition or mainte-
nance of market power therein.
5. All documents which show any request or demand
by any-.customer , including any governmental agency, for
prices or a pricing system whereby two or more electronic
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'~ r r r
data proc,cssing' products or services are, included in a
single price.
6. All, documents relating to any announcement by
any supplier of.a new electronic data processing prod+ict
or service, or a change or modification of a prior
announced electronic data processing product or service,
including:
. (a) the time, timing or content of such
announcement;
(b) any change in or cancellation of any
electronic data processing product or service or _
any specification or capability thereof;
(c) the satisfaction or failure to satisfy
any test or other standard;
(d) any manner in which such announcement
was premature in terms of the design, development
or-availability of such product or service.
7. All documents which show the percentage return
(whether profit or loss) on investment, or on revenue
realized-or anticipated, by any supplier of any elec-
tronic data processing product or service on any such
product or service or the relationship any such return
has or has not to any average or standard of comparison
or to the return on any other data processing product
or service.
8. All documents which show any giving or offering
by-any supplier of any electronic data processing product
or service of a?price, product, service, term, condition,
financing arrangement, or other consideration to any
customer which is not offered or otherwise made available
to all customers.
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Schedule 3
Atomic Energy Commission
Headquarters, Washington, D.C. and Germantown, Maryland
National Aeronautics & Space Administration
NASA Headquarters,-300 7th Street, S.W., Washington, D.C.
Goddard Space Center
John F. Kennedy Space Center
Central Intelligence Agency
Headquarters, Washington, D.C. and McLean, Virginia
,Department of Commerce
NOAA Headquarters, Rockville, Maryland
Department of Health, Education & Welfare
. National Institutes of Health, Bethesda, Maryland
National Security Agency
Headquarters, Fort Meade, Maryland
General Services Administration
Central Office, Federal Supply Service, ADP Procurement
.Division, Washington, D.C.
Department of Transportation
}Ieadquarters, U.S. Coast Guard, Washington, D.C.
Department of Defense
Advanced Research Project Agency, Arlington, Virginia
'A ADPESO, The Pentagon, Washington, D.C.
Army Materiel Command, Philadelphia, Pennsylvania
Naval Weapons Laboratory, Dahlgren, Virginia
'Direc'torate of Defense Research and Engineering,
0 Office of, the Deputy Director for Electronics
and Information Systems, The Pentagon,
Washington, D.C.
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BRIEFING' NOTES
The Government has charged IBM with monopolization or
attempted monopolization of the general purpose digital computer in
violation of the Sherman Act.
At the request of IBM the Court has ordered the United States
to produce certain documentation to be inspected by IBM.
This Agency is one of nine Agencies so directed.
4. We have pointed out to the Department of Justice our problems
of compliance, but it has been determined that a search for document;-tion
covered by the Order must be undertaken.
5. We have advised the Department of Justice that we will reserve
judgment of what we will make available and under what conditions.
6. The period of review is 1 January 1961 to 1 January 1972.
7. The search of all Agencies will be completed before
15 April 1972.
8. Accordingly, Mr. Colby has directed that a search be undertaken
immediately of the appropriate active files in the Headquarters area.
10. No review of inactive data is required at this time.
11. Documents will be broken into three categories:
(a) Unclassified
(b) 3rd Party proprietary
(c) Classified
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12. Classified data will be further separated into three subcategories:
(a) SECRET and below
(b) TOP SECRET
(c) CODEWORD
13. Documents will be listed by categories with with copies of such
listings to General Counsel prior to 15 April.
14. Each of you is being provided with a copy of the 4 April 1972
memorandum from Mr. Colby which cites the above general information
with applicable schedules.
15. Schedule two indicates the documents which are to be produced.
It is*suggested that these documents be pegged or earmarked in the
files without removing them at this time to expedite removal when
inspection is authorized.
16. In order to insure that the DDS&T has time to review and assemble
the data, a deadline of COB 12 April 1972 has been established.
17. It is requested that each office designate an individual responsible
for this tasking of pulling together the information, and the name be
provided to Chief, PMS/DDS&T by COB today.
18. The Office of Logistics is dealing directly with the Contracting
teams except SPS, OSP and OSA. The teams will research their own
files but will not be researching technical files. The contracting officers
of the special teams have been alerted to the requirement.
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The important thing to remember is that the information required
more likely will appear in the technical files than in the contracting
officers files.
20. Reporting format will be provided to your designee.
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