[This story was scheduled for page 18 of this week's Time magazine, but got cut at the last minute and replaced with a Diana investigation update. Background: Previous CBO cost estimates released in May and July focused on versions of SAFE that dealt only with exports. This estimate not only covers the costs of operating snooperware systems; it predicts that some products may drop crypto and users may abandon its use if such a requirement exists. Enjoy. --Declan] ****** ENCRYPTION What Will It Cost To Let Big Brother Watch? By Declan McCullagh High tech firms battling what they call an Orwellian anti-privacy bill in Congress are challenging a new government study. Last Friday the Congressional Budget Office stuck a price tag on a bill that would ban the manufacture of telephones, computers, and software that the FBI can't easily monitor. The amount consumers would pay: an estimated $200 million to $2 billion a year. But technology groups say the true cost would be astronomical. "It would be the greatest technological challenge the U.S. software industry is facing today, larger than the year 2000 problem. We don't know how to do this," says Jon Englund of the Information Technology Association of America. He says that since the CBO study focuses on computer programs and not the Internet, the true cost would be hundreds of billions higher. A huge chunk of existing technology would have to be redesigned, and plans to protect cyberspace from eavesdroppers would be derailed. That's an acceptable tradeoff, say the plan's backers. "Organized crime, drug organizations, and terrorist organizations have the ability to use encryption and render law enforcement folks unable to have access," says Rep. Michael Oxley (R-Ohio), a backer of the FBI's plan. The House Commerce committee is scheduled to vote on Oxley's proposal on Thursday. ------------------------- Declan McCullagh Time Inc. The Netly News Network Washington Correspondent http://netlynews.com/