CyberCash Acquires Rights to Micropayment Technology from Carnegie Mellon University
Reston, VA. -- April 8, 1997 -- CyberCash, Inc., (NASDAQ:CYCH), a leading provider of Internet payment platforms and services to financial institutions worldwide, and Carnegie Mellon University today announced an agreement which commercializes a new generation of advanced micropayment technology for electronic commerce, called NetBill. The NetBill technology enables an Internet billing system that provides the mechanisms for consumers and merchants to conduct secure transactions over the Internet. Under this agreement, CyberCash, Inc., acquires worldwide rights to commercially use and sublicense the NetBill electronic commerce technology. In addition, CyberCash will work with Carnegie Mellon University to advance Carnegie Mellon's research regarding network-based Internet payment systems.
Carnegie Mellon's research is focused on the technical, economic and policy issues associated with electronic commerce over open networks. The research advances the techniques available to support the expected explosion in the sale of multimedia and digital information requiring small payments and assured delivery. This commercialization of the NetBill technology is expected to provide CyberCash with a competitive edge within its menu of payment solutions.
"The NetBill technology allows us to build upon our existing payment infrastructure," said Bill Melton, CEO of CyberCash. "Acquiring this license enables our commercialization of the technology quickly, offering it's unique features to the commercial markets. Additionally, we are adding to our suite of services enabling our financial institution partners to better serve their customers."
The NetBill project has been led by Carnegie Mellon University Co-Principal Investigators, Marvin Sirbu, Professor of Engineering and Public Policy, and Douglas Tygar, Professor of Computer Science.. "The NetBill technology provides some unique features for highly secure, certified transactions over both intranets and the Internet," stated Sirbu. "CyberCash's leading position in the marketplace makes them well positioned to utilize and disseminate this technology and support its rapid commercial application in a variety of settings. "CyberCash has considerable Internet payment systems expertise and we expect to realize numerous synergies from the company's support of the technology and Carnegie Mellon University's beta trial."
"Carnegie Mellon University is a long standing premier research university responsible for many landmarks in computer science and networking . We are looking forward to working closely with Carnegie Mellon University to facilitate the success of the NetBill project," said Steve Crocker, Chief Technology Officer of CyberCash. "Their leadership, vision and reputation as a pioneer of information networking make them an exceptionally valuable contributor to the field of electronic commerce in general and applications of the NetBill technology in particular."
"Mellon Bank is proud of its role as an original participant in the design of the system and we continue to support its further development," said David Merritt, Vice President and New Product Design Manager, Global Cash Management of Mellon Bank N. A.. "We are pleased that CyberCash and Carnegie Mellon University are forming this hallmark agreement, which is a significant step in moving the NetBill technology forward to create even more opportunities in the future for buyers and sellers of information goods."
Carnegie Mellon University is one of six major Universities that have been funded to develop technologies for online digital libraries. The NetBill technology has been designed on the basis of close consultation with these major libraries to meet the diverse needs of electronic publishers.
The NetBill technology has been developed by students, faculty and staff of the Information Networking Institute (INI) at Carnegie Mellon University with research support from the U.S. National Science Foundation through its Digital Library Initiative, the Defense Advanced Research Projects Agency, and several corporate sponsors. The INI engages in multidisciplinary research and education combining computer science, networking and business applications.
CyberCash, Inc., (NASDAQ: CYCH) of Reston, Virginia, is a leading developer of software and service solutions for secure financial transactions over the Internet. The CyberCash system is designed to allow banks to offer secure Internet payments to their customers. The company offers a complete suite of Internet payment solutions including; the company's initial service, which handles payments using major credit cards introduced early 1995; the company's innovative micropayment service that enables cash transactions, launched in 1996; and PayNow Secure Electronic Check Service, that allows consumer-to-business and business-to-business funds transfer via checking accounts.
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Last revision: Tue Apr 22 12:59:43 EDT 1997