Public Key Royalties

[John Young <jya@pipeline.com>]

In a recent GAO report on governmental funding of university research
there is this note:

   In fiscal year 1996, the commercialization of the public key encryption 
   method, which was developed under grants from the Navy and NSF, 
   resulted in $271,875 in royalties to MIT.

Does this refer to RSA or PGP? Did the Navy underwrite RSA's PK work?
If so does the USG have a secret stake in PGP, Network Associates
and RSA?

More: did the Navy guide PK researchers based on the secret UK PK work 
before Diffie-Hellman?

The full report:

   http://jya.com/rced-98-126.txt  (184K)