||This article's lead section may not adequately summarize key points of its contents. (August 2012)|
|Phillip Walter Katz|
|Born||November 3, 1962|
|Died||April 14, 2000
Creator of zip file format
Phillip Walter Katz (November 3, 1962 – April 14, 2000) was a computer programmer best known as the co-creator of the ZIP file format for data compression, and the author of PKZIP, a program for creating zip files which ran under DOS.
Phil Katz graduated from the Computer Science Engineering program at the University of Wisconsin–Milwaukee. Following his graduation, Katz was hired by Allen-Bradley Co. as a programmer. He wrote code to run programmable logic controllers which operated manufacturing equipment on shop floors worldwide for Allen-Bradley's customers.
PKARC and PKWARE 
Katz left Allen-Bradley in 1986 to work for Graysoft, a Milwaukee-based software company. At the time, he had worked on an alternative to Thom Henderson's ARC, named PKARC. ARC was written in C, with the source code available on System Enhancement Associates' BBS. PKARC, written partially in assembly language, was much faster. Katz had a special flair for optimizing code. Besides writing critical code in assembly language, he would write C code to perform the same task in several different ways and then examine the compiler output to see which produced the most efficient assembly code. He first publicly released only PKXARC, an extraction program, as freeware. Its much greater speed caused it to spread very quickly throughout the BBS community. Strong positive feedback and encouragement prompted Katz to release his compression program, PKARC, and eventually to make his software shareware. Katz founded PKWARE, Inc. in 1986, with the company's operations done in his home in Glendale, Wisconsin, but remained at Graysoft until 1987. Steve Burg, a former Graysoft programmer, joined PKWARE in 1988.
In the late 1980s a dispute arose between SEA, maker of the ARC program, and PKWARE (Phil Katz Software). SEA sued Katz for trademark and copyright infringement. The most substantial evidence at trial was from an independent software expert appointed by the court to compare the two programs. He stated that PKARC was a derivative work of ARC, pointing out that comments in both programs were often identical, including spelling errors.
On August 2, 1988, the plaintiff and defendants announced a settlement of the lawsuit, which included a Confidential Cross-License Agreement under which SEA licensed PKWARE for all the ARC-compatible programs published by PKWARE during the period beginning with the first release of PKXARC in late 1985 through July 31, 1988, in return for an undisclosed payment. In the agreement, PKWARE paid SEA to obtain a license that allowed the distribution of PKWARE's ARC-compatible programs until January 31, 1989, after which PKWARE would not license, publish or distribute any ARC compatible programs or utilities that process ARC compatible files. In exchange, PKWARE licensed SEA to use its source code for PKWARE's ARC-compatible programs. PKWARE also agreed to cease any use of SEA's trademark 'ARC' and to change the names or marks used with PKWARE's programs to non-confusing designations. The remaining details of the agreement were sealed. In reaching the settlement, the defendants did not admit any fault or wrongdoing. The Wisconsin court order showed defendants was ordered to pay damages to plaintiff for defendants' acts of infringing Plaintiff's copyrights, trademark, and acts of unfair trade practices and unfair competition.
The leaked agreement document revealed under the settlement terms, the defendants had paid plaintiff $22,500 for past royalty payments, and $40,000 for expense reimbursements. In addition, defendants would pay plaintiff a royalty fee of 6.5% of all revenue received for ARC compatible programs on all orders received after the effective date of this Agreement, such revenue including any license fees or shareware registrations received after the expiration of the license, for ARC compatible programs. In exchange, plaintiff would also pay a commission in the amount of 6.5% of any license fees received by plaintiff from any licensee referred to plaintiff by defendants, whether before or after the license termination date.
After the lawsuit, PKWARE released one last version of his PKARC and PKXARC utilities under the new names "PKPAK" and "PKUNPAK", and from then on concentrated on developing the separate programs PKZIP and PKUNZIP, which were based on new and different file compression techniques. However, following the renaming, SEA filed a lawsuit against PKWARE for contempt, for continually using plaintiff's protected mark ARC, by turning ARC from noun into verb in the PKPAK manual. The US district court of the East District of Wisconsin ruled SEA's motion was denied, and the defendant was entitled to recover the legal cost of $500.
The SEA vs. PKWARE dispute quickly expanded into one of the largest controversies the BBS world ever saw. The suit by SEA angered many shareware users who perceived that SEA was a "large, faceless corporation" and Katz was "the little guy". In fact, at the time, both SEA and PKWARE were small home-based companies. However, the community largely sided with Katz because SEA was attempting to retroactively declare the ARC file format to be closed and proprietary. Katz received positive publicity by releasing the APPNOTE.TXT specification documenting the ZIP file format, and declaring that the ZIP file format would always be free for competing software to implement. The net result was that the ARC format quickly dropped out of common use as the predominant compression format that PC-BBSs used for their file archives, and after a brief period of competing formats, the ZIP format was adopted as the predominant standard.
PKZIP made Katz one of the most well-known shareware authors of all time. Although his company PKWARE became a multimillion dollar company, Katz was more noted for his technical expertise than business prowess. His family assisted him in running the company, but he eventually fired them when they denied him access to the company's profits.
Katz was adamantly opposed to Microsoft Windows in the early 90s. This led to PKWARE missing out on the opportunity to be the first to bring PKZIP to the platform.
Alcoholism and death 
Katz battled alcoholism for years. The earliest known arrest occurred in 1991. About a year later, Katz was again convicted of drunk driving. Between 1994 and September 1999, Katz was arrested five times for operating after suspension or revocation of his driver's license.
Before his death, Ozaukee County Sheriff's Department had several outstanding warrants against Katz, including jumping bail and the automobile operation charges Operating While Intoxicated and Operating After Revocation.
On April 14, 2000, at the age of 37, Katz was found dead in a hotel room with an empty bottle of peppermint schnapps in his hand. A coroner's report stated his death was a result of acute pancreatic bleeding caused by chronic alcoholism.
- Phil Katz PKWARE Founder from PKWARE
- Phil Katz (PKARC author) sued by SEA (ARC author)
- Joint press release
- System Enhancement Associates, Inc. v. PKWare, Inc. and Phillip W. Katz, No. 88-C-447, Judgment for Plaintiff on Consent, E.D. Wisc. (Aug. 1., 1988)
- System Enhancement Associates vs. PKware, Inc CONFIDENTIAL CROSS-LICENSE AGREEMENT
- System Enhancement Associates vs. PKware, Inc
- UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN Case No. 88-C-447
- BBS Documentary, Episode 8, , Accessed as of 13.07.2012
- The short, tormented life of computer genius Phil Katz
- Outstanding Warrants for Phil Katz (2000)
- "Famed software pioneer dies at 37". Journal Sentinel. 2000-04-22. "Phillip W. Katz, the eccentric inventor of computer file-compression software used around the world, and a pioneer in the concept of shareware, is dead at age 37. The cause of death was complications from chronic alcoholism, according to medical examiner's records. Katz came onto the computer scene when communication was expensive and slow. His program, PKZip, played a large role in making Internet communication faster, said a University of Wisconsin–Milwaukee computer science..."