NEWS RELEASE May 1994 For Further Information: Karen Crowther 707 937-3320 Congressman Declares War on US Software Companies Children's and Educational Programs Endangered US Representative Tom Lantos (D-Calif) has declared war on small American software businesses. In a public hearing held in San Francisco on May 21, Lantos reaffirmed his support for the establishment of an expensive private bureaucracy for the purpose of applying ratings to computer games, even if it means the destruction of hundreds of small companies. This plan would be administered by the Interactive Digital Software Association (IDSA), an organization created by a few giant video game manufacturers. The IDSA plan would require the publishers of computer games to produce and submit videotapes, pay processing fees of $500 or more, and await review by a secret committee before they could release products in the marketplace. In contrast to this plan, four major trade associations, representing over 3000 businesses, are in the process of developing a standardized ratings system that could be quickly and accurately applied to software as part of the development process, and which would impose no fees on the publishers. Although the IDSA plan has been heavily criticized by both independent publishers and the trade associations, and has not yet started operation, Lantos, along with Senators Joseph Lieberman (D-Conn) and Herbert Kohl (D-Wisc), has already sent letters on Congressional letterhead to major retailers, urging them to purchase software only from businesses which submit to the IDSA plan. According to software industry spokesperson Karen Crowther, the costs and delays of the IDSA plan would be devastating to many small and entrepreneurial software businesses which produce children's and educational software. Lantos' response was that "protecting our children" is more important than the survival of these companies. Ironically, Nintendo and Sega, billion-dollar companies and major proponents of the IDSA plan, publish "Mortal Kombat", the game most often cited by Lantos in his campaign against "filthy and disgusting" video games. Daniel Sejzer, president of Villa Crespo Software, a games publisher based in Chicago, labeled the IDSA plan "ridiculous. Under no circumstances should publishers agree to reveal their trade secrets and new concepts to outsiders." Sejzer added that he would favor self-applied ratings following industry guidelines. Rosemary West, president of the Educational Software Cooperative (ESC), representing over 50 companies, said "If implemented, the IDSA plan would actually prevent distribution of many wholesome, educational games, because the smaller developers simply cannot afford these unnecessary costs." Crowther added that the IDSA plan would assist foreign-owned Nintendo and Sega in "crushing their smaller, U.S. competition" and asked, "Why is Lantos supporting an anti-competitive ratings system instead of one developed by our own games publishers?" She pointed out that callers requesting information from Lantos' office are given the phone number for IDSA's Washington lobbyist. ###### FOR MORE INFORMATION CONTACT: Karen Crowther P.O. Box 892 Mendocino CA 95460 Voice/Fax: 707 937-3320 CompuServe: 71501,3553