Restitution to Microsoft in
U.S. v. Jeffrey Lee Parson
Introduction
On 11 August 2003, the first version of the Blaster (also called MS Blaster, MSBlast, or Lovsan) worm was found.
Subsequently, many variants of this worm appeared.
On 13 Aug 2003, Jeffrey Parson, then a few weeks past his 18th birthday, released the Blaster.B worm
from his house near Minneapolis. On 19 Aug 2003, federal agents searched Parson's house on suspicion that he had
released a malicious computer program, and Parson was arrested on 29 Aug 2003.
On 11 Aug 2004, Jeffrey Lee Parson pled guilty.
On 28 Jan 2005, Parson was sentenced
by Judge Pechman in U.S. District Court in Seattle. Parson and the U.S. Government Prosecutors were unable to
agree on the amount of restitution that Parson should be ordered to pay.
On 29 Mar 2005, Microsoft settled with Parson.
This document is an HTML version of the settlement agreement between Microsoft and Parson.
I have posted this Memorandum from the Blaster.B case because:
- prosecution and punishment of people for writing
or releasing a computer virus/worm has been rare;
- the monetary value of damage caused by the release of a computer virus/worm is rarely determined in a Court;
- I hope that readers will see the seriousness of writing or
releasing malicious computer programs, such as a virus or worm; and
- I hope to assist professors of computer science to teach ethical behavior to their students.
Because I believe that this historical document should be readily available,
I acquired a photocopy from the court clerk of
the U.S. District Court in Seattle,
scanned it, used optical character recognition software to convert
the document to ASCII text, formatted the text in HTML,
and posted it on the Internet at my website.
Ronald B. Standler
30 March 2005
[Stipulation of Parties -- Page 1 of 2]
U.S. District Court
Western District of Washington
At Seattle
United States of America v. Jeffrey Lee Parson
Stipulation of Parties
Concerning Restitution Owed
to Microsoft Corporation
Case Number: CR03-0379P
The United States of America, by John McKay, United States Attorney, and Annette L. Hayes, Assistant United States Attorney for the Western District of Washington,
and Jeffrey Lee Parson, by his attorneys, Carol Koller and Nancy Tenney, file this Stipulation of Parties Concerning Restitution Owed to Microsoft Corporation.
STIPULATION
Subject to the Court entering the Proposed Order Concerning Restitution to Microsoft Corporation attached hereto, see Attachment A,
the parties hereby stipulate and agree that the total amount of restitution that Jeffrey Lee Parson owes to Microsoft Corporation
in this case is $497,546.55. The parties further stipulate and agree that this amount should be included in the
[Stipulation of Parties -- Page 2 of 2]
Amended Judgment in this case.
DATED this 29th day of March, 2005.
Respectfully submitted,
John McKay
United States Attorney
/signed/
ANNETTE L. HAYS
Assistant United States Attorney
/signed/
Carol Koller, Attorney for Jeffrey Lee Parson
/signed/
Nancy Tenney, Attorney for Jeffrey Lee Parson
[Attachment A -- Page 1 of 2]
SETTLEMENT AGREEMENT
A. RECITALS
1. On August 11, 2004, Jeffrey Lee Parson (hereinafter "Parson" or "the defendant") pled guilty to one count of intentionally causing
and attempting to cause damage to a protected computer, as charged in Count One of the Indictment, in violation of Title 18, United States Code,
Sections 1030(a)(5)(A)(i), 1030(a)(5)(B)(i), 1030(b), and 1 1030(c)(4)(A).
2. On January 29, 2005, the Court sentenced Parson to eighteen (18) months in prison, and three (3) years of supervised release
subject to a number of standard and special conditions. At the hearing, the Court ordered that the parties present additional evidence
concerning restitution at a separate hearing on February 10, 2005. Pursuant to the parties' agreed motion,
the Court continued the restitution hearing to March 30, 2005, at 9:00 a.m.
B. RELEASE
3. Microsoft agrees to accept as full satisfaction of the ordered restitution the defendant's commitment to perform an additional two hundred (225) hours of community service
as approved and directed by his probation officer, to be completed at the rate of seventy-five (75) hours per year,
during his three (3) year term of supervised release. These hours are not to be performed in an area dealing with computers or the Internet,
and instead are to be performed working with less fortunate members of the defendant's community.
This requirement shall be included in the Amended Judgment as an Additional Supervised Release Term.
4. In consideration for the agreement set forth herein concerning restitution, Jeffrey Lee Parson waives, releases and discharges Microsoft,
its officers, directors, agents, employees and attorneys from all claims that may have arisen or that may arise in any way relating to this
Agreement and Case No. CR03-379P, including but not limited to investigation of Jeffrey Lee Parson and the enforcement
by Microsoft of its legal rights. Microsoft Corporation waives, releases and discharges Jeffrey Lee Parson,
their assigns and any agents from all claims that may have arisen or that may arise in any way relating to this Agreement and
Case No. CR03-379P.
5. This Agreement, including the recitals, constitute the entire agreement between the parties,
and supercede all prior negotiations and agreements between the parties.
These terms are intended as the final, complete and exclusive statement of the terms between the parties and
cannot be changed or terminated orally. There are no express or implied representations, warranties or inducements, except as set forth herein.
[Attachment A -- Page 2 of 2]
This Agreement is to be deemed to have been drafted jointly by the parties.
This Agreement may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement.
No evidence outside of this Agreement may be introduced in any proceeding to interpret this Agreement.
The Agreement may not be modified, supplemented or amended except in a writing signed by both parties.
The provisions of this Agreement are severable. If any provision is held invalid, all other provisions continue in effect.
6. Each party has: (a) carefully read this Agreement, and (b) had plenty of time to consider it and consult a lawyer.
This Agreement is signed voluntarily based on each party's judgment that it is a fair and reasonable compromise.
DATED: March 29, 2005
/signed by/
MICROSOFT CORPORATION
Scott Stein, Senior Attorney
Law and Corporate Affairs
Jeffrey Lee Parson
Carol Koller Attorney for Jeffrey Lee Parson
Nancy Tenney Attorney for Jeffrey Lee Parson
this document is at http://www.rbs2.com/parson3.html
30 March 2005
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