Loren Data Corp.

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COMMERCE BUSINESS DAILY ISSUE OF AUGUST 8,1996 PSA#1654

USPS Information Technology Purchasing, 475 L'Enfant Plaza, SW, Washington, DC 20260-6238

36 -- POSTAL SECURITY DEVICES AND INDICIA (POSTMARKS) DUE 081596. POC Beverley Goodale, Purchasing Specialist, Room 4541, 475 L'Enfant Plaza, SW, Washington, DC 20260-6238 (202) 268-5286. No Collect Calls. Notice of proposed specifications with request for comments. Historically, postage meters have been mechanical and electromechanical devices that (1) maintain through mechanical or electronic ``registers'' (postal security devices) an account of all postage printed and the remaining balance of prepaid postage, and (2) print postage postmarks (indicia) that are accepted by the Postal Service as evidence of the prepayment of postage. Two proposed specifications have been developed on these subjects, and are entitled ``Information based Indicia Program (IBIP) PSD Specification'' and ``Information Based Indicia Program (IBIP) Indicia Specifications.'' The U.S. Postal Service is seeking comments on these specifications. The Postal Service also seeks comments on intellectual property issues raised by the specifications if adopted in present form. If an intellectual property issue includes patents or patent applications covering any implementations of the specifications, the comment should include a listing of such patents and applications and the license terms available for such patents and applications. There are approximately 1.5 million postage meters in use in the United States which collectively account for approximately $20 billion in postal revenue annually. The manufacture and use of postage meters is governed by Postal Service regulations (see 39 C.F.R. Part 501; Domestic Mail Manual P030). For several years USPS has been actively proposing a solution of the problem of inadequate postage meter security. To respond to the threat of fraudulent use of meters by physical tampering, USPS intends to decertify and remove from the market, in risk-driven phases, all postage meters using mechanical registers. Another problem USPS has faced is that currently available meter indicia are susceptible to counterfeiting. The Postal Service is exploring using current technology special purpose units such as computers and independent printers to provide prepaid postage. The Information Based Indicia Program (IBIP) is a Postal Service initiative supporting the development and implementation of a new form of postage indicia. This IBIP specification is intended to address the counterfeiting threat. USPS envisions that the new indicium standard may eventually support new or existing products and services. Specific products and services have not been determined. An ``IBIP indicium'' substitutes for a postage stamp or a postage meter imprint as evidence of the fact that postage has been paid on mailpieces. An ``IBIP Postal Secure Device'' provides cryptographic signature, financial accounting, indicium creation, device authorization, and audit functions. The goal for IBIP is to provide an environment in which customers can apply postage through new technologies that improve postal revenue security. The IBIP indicia is expected eventually to replace all metered postage imprints that rely on letters press printing technology. This requires a new form of postage indicia and the adoption of standards to facilitate industry investment and product development. The Postal Security Device will provide security services to support the creation of the new ``IBIP' indicium.'' The PSD provides security-critical functions for IBIP customers. The PSD will be a hardware component for use with either a computer-based or postage meter-based host system. Each PSD will be a unique security device. The PSD core security functions are cryptographic digital signature generation and verification, and the secure management of the registers that track the remaining amount of money available for indicium creation (i.e., descending register) and the total postage value used by the PSD (i.e., ascending register). The PSD will be a tamper-resistant device that may contain an internal random number generator, various storage registers, a date/time clock, and other circuits necessary to perform these functions. The PSD will comply with Federal Information Processing Standard (FIPS) 140-1 and will be validated through the National Institute of Standards and Technology (NIST) Computer Systems Laboratory's Cryptographic Module Validation Program. It is emphasized that this proposed standard is being published for comments and is subject to final definition. In particular, evaluation of alternative digital signing, printing standards, and symbology is continuing. Comments on the two specifications must be received on or before September 30, 1996. Comments addressing intellectual property issues must be received on or before August 15, 1996. Copies of the Indicium and Postal Security Device Specifications may be obtained from: Terry Goss, United States Postal Service, 475 L'Enfant Plaza SW, Room 8430, Washington, DC 20260-6807. Copies of all written comments may be inspected and photocopied between 9 a.m. and 4 p.m., Monday through Friday, at the above address. Although exempt from the notice and comment requirements of the Administrative Procedure Act (5 U.S.C. Sections 553 (b), (c)) regarding proposed rulemaking by 39 U.S.C. Sections 410 (a), the Postal Service invites public comments on the proposed specifications. (218)

Loren Data Corp. http://www.ld.com (SYN# 0350 19960807\36-0001.SOL)


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