All encryption products distributed in or imported into the U.S. after January 1, 1999 must have a key escrow backdoor for the government, according to an FBI-backed proposal circulating on Capitol Hill. The measure would impose a similar requirement on "public network service providers" that offer data-scrambling services. FBI Director Louis Freeh talked about this proposal, without disclosing legislation existed, at a Senate subcommittee haring on Wednesday. Domestic use and sale of encryption has never been regulated. Attached is an excerpt from the draft "Secure Public Networks Act" dated August 28. -Declan ------- SEC. 105. PUBLIC ENCRYPTION PRODUCTS AND SERVICES (a) As of January 1, 1999, public network service providers offering encryption products or encryption services shall ensure that such products or services enable the immediate decryption of communications or electronic information encrypted by such products or services on the public network, upon receipt of a court order, warrant, or certification, pursuant to section 106, without the knowledge or cooperation of the person using such encryption products or services. (b) As of January 1, 1999, it shall be unlawful for any person to manufacture for sale or distribution within the U.S., distribute within the U.S., sell within the U.S., or import into the U.S., any product that can be used to encrypt communications or electronic information, unless that product: (1) includes features, such as key recovery, trusted third party compatibility or other means, that (A) permit immediate decryption upon receipt of decryption information by an authorized party without the knowledge or cooperation of the person using such encryption product; and (B) is either enabled at the time of manufacture, distribution, sale, or import, or may be enabled by the purchase or end user; or (2) can be used only on systems or networks that include features, such as key recovery, trusted third party compatibility or other means, that permit immediate decryption by an authorized party without the knowledge or cooperation of the person using such encryption product. (c) (1) Within 180 days of the enactment of this Act, the Attorney General shall publish in the Federal Register functional criteria for complying with the decryption requirements set forth in this section. (2) Within 180 days of the enactment of this Act, the Attorney General shall promulgate procedures by which data network service providers sand encryption product manufacturers, sellers, re-sellers, distributors, and importers may obtain advisory opinions as to whether a decryption method will meet the requirements of this section. (3) Nothing in this Act or any other law shall be construed as requiring the implementation of any particular decryption method in order to satisfy the requirements of paragrpahs (a) or (b) of this section. ------- MSNBC's Brock Meeks on above FBI proposal & White House support: http://www.msnbc.com/news/108020.asp My report on the September 3 "mandatory key escrow" Senate hearing: http://jya.com/declan6.htm Transcript of FBI director Louis Freeh's remarks at Sep 3 hearing: http://jya.com/fbi-gak.txt Reuters' Aaron Pressman on Commerce Dept backing away from FBI: http://www.pathfinder.com/net/latest/RB/1997Sep05/248.html -------