From: tom.klemesrud@support.com
Subject: Netcom responds to ruling
Date: Wed, 29 Nov 95 02:41:22 -0800


               NETCOM RESPONDS TO RULING ON COPYRIGHT CASE

    SAN JOSE, Calif., Nov. 28 /PRNewswire/ -- In response to media
inquiries concerning Judge Whyte's ruling on a lawsuit brought by the
Church of Scientology alleging copyright infringement against NETCOM
On-Line Communication Services, Inc. (Nasdaq: NETC), the Company today
issued the following statement:

    U.S. District Judge Ronald Whyte's November 21, 1995 ruling was a major
victory for NETCOM, and the Company is confident that its position will be
upheld with respect to the remaining disputed issue that the court ordered
to trial.  Specifically:

    * The Court vindicated NETCOM's position, ruling in favor of the
Company on two of the three critical points under review.  Judge Whyte
ruled that NETCOM is not liable for direct copyright infringement or for
vicarious liability.  On the central issue of direct copyright
infringement, the Court held that NETCOM is not liable for direct
infringement when an individual uses its system to post copyrighted
material onto the Internet without its knowledge.  Rejecting the
plaintiffs' position in this regard as "unreasonable," the Court noted that
holding an access provider liable for direct infringement under those
circumstances "would ... result in liability for every single Usenet server
in the worldwide link of computers transmitting [the infringing] message to
every other computer."

    * With respect to contributory copyright infringement, the Court
concluded that issues of fact precluded a grant of summary judgment in
NETCOM's favor, but stated that "[g]iven the context of a dispute between a
former minister and a church he is criticizing," NETCOM may be able to show
that it acted responsibly under the circumstances and thereby avoid
liability all together.  Further, the ruling stated, "[t]he court finds
that Plaintiffs have not met their burden of showing a likelihood of
success on the merits as to either Netcom or Klemesrud."

    * In the same order, the Court denied the Plaintiffs' request that a
preliminary injunction be entered against NETCOM pending trial.

    In addition NETCOM clarified that:

    "NETCOM provides direct access to the Internet.  It is not a
content-based service but rather a communications conduit to the
information available on the Internet.  Other than messages to our
subscribers about NETCOM services, NETCOM does not post content, does not
control the content or the destination of information posted, and does not
control where, when or whether that information may be downloaded.

    "Moreover, NETCOM does not have the ability to monitor in advance the
content of messages transmitted by the Company's subscribers over the
Internet or to determine whether such content violates or complies with
copyright protections.  The Company is a passive transmitter of millions of
messages which are created worldwide and conveyed throughout the Internet
everyday."

    NETCOM

    NETCOM On-Line Communication Services, Inc. provides high-quality, low
cost, nationwide Internet access over its own high-speed digital network. 
A public company since December 1994, NETCOM has experienced substantial
growth in both its subscriber base, with over 232,800 subscribers, and the
number of access points by aggressively building a nationwide network. 
Since NETCOM operates its own network employing TCP/IP, the backbone
technology of the Internet, both individual and business subscribers
benefit from a stable, reliable network at low prices.  Internet users can
learn more about the company on-line at: http://www.netcom.com

    CONTACT:  Jeannie Slone of NETCOM, 408-556-3211, or
jslone@ix.netcom.com; or Curtis Kundred of Fleishman-Hillard Inc.,
415-356-1020, or kundredc@fleishman.com, for NETCOM
    (NETC)