Friday, September 17, 1999
U.S. gives in on encryption
Best computer data-scrambling now may be exported
The Associated Press
WASHINGTON — The White House agreed Thursday to allow U.S. companies to sell the most powerful data-scrambling technology overseas with virtually no restrictions, a concession to America's high-tech industry over law enforcement and national security objections.
The move was a defeat for the Justice Department, which had forcefully argued that criminals and terrorists might use the technology to scramble messages about crimes or deadly plots.
On the other hand, the decision should help U.S. companies in overseas competition — and help consum ers worldwide guarantee the privacy of their e-mail and online credit-card purchases.
Critics of restrictions on export sales said criminals and terrorists already could buy or download powerful encryption technology made in other countries.
“Those who are going to misuse encryption for criminal purchases aren't going to limit themselves to U.S.-made encryption products,” said Ed Gillespie, executive director of Americans for Computer Privacy.
The administration will allow high-tech companies to sell even the most powerful encryption technology overseas to private and commercial customers after a one-time technical review of their products.
The White House will still require companies to seek permission to sell the scrambling technology to a foreign government or military, and it maintains bans on selling to seven nations considered to promote terrorism: Iran, Iraq, Libya, Syria, Sudan, North Korea and Cuba.
Previously, the administration allowed companies to sell the most powerful scrambling technology only to specific industries overseas; other foreign customers were generally limited to so-called 56-bit encryption products, meaning those with 72 quadrillion unlocking combinations.
“Forcing U.S. companies to do business under tight export controls was like asking them to use a black rotary telephone in a cellular, call-waiting world,” said Harris Miller, president of the Information Technology Association of America, a trade group.
Critics had cited more than 800 products available worldwide with stronger scrambling technology than the United States allowed its companies to sell overseas.
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