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We agree with respondent that the general ledger project
activities do not constitute qualified research. The only activity
that could have involved technical risk was the shadow files
system. However, we accept Mr. Teixeira's assertion that the
development of a shadow files system was common at large U.S. banks
and required only the following of known methodologies and
approaches--routine software development that does not expand or
refine the principles of computer science and does not involve the
engagement of technical risk.
E. Money Transfer
Dr. McDermott opined that the money transfer system project
involved qualified research due to the financial and security risks
involved in complying with the regulatory changes imposed by the
Federal Reserve and the expected growth in the industry. He wrote
of NTS' efforts of extensive testing to assure the elimination of
software bugs. Finally, he noted that NTS rewrote as much as 50
percent of the source code to the system to provide the
functionality needed by Norwest.
Dr. Davis admitted lack of knowledge of wire transfer systems;
he deferred to Mr. Teixeira for elaboration. He commented that the
development of systems through the use of COBOL language and the
Tandem computer (which were apparently used in the money transfer
system) do not constitute the discovery of information that is
technological in nature or which could involve a process of
experimentation.
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