Due to the now widespread use of the Internet, most companies now require computer aided design (CAD) tools that support distributed collaborative design on the Internet. Such CAD tools should enable designers to share product models, as well as related data, from geographically distant locations. However, integrated collaborative design capability over the Internet has not fully matured. For example, Potter (1997a) found that security and authentication are still major concerns when transferring CAD files over the Internet. Designers or companies need to protect intellectual property. This article determines the Internet-based collaborative design capabilities available in modern CAD tools, outlines the major problems that still need to be addressed (e.g., version control, data translation and repair, and security and legitimacy issues), and recommends directions for future research. (Contains 2 tables.)