From: believer@telepath.com Subject: IP: White House decision affects e-mail scrambling software Date: Wed, 16 Sep 1998 18:17:36 -0500 To: believer@telepath.com Source: Fox News - AP White House decision affects e-mail scrambling software 6.56 p.m. ET (2256 GMT) September 16, 1998 By Ted Bridis, Associated Press WASHINGTON (AP) — The Clinton administration relaxed some restrictions Wednesday on the export of powerful data-scrambling technology — a decision that could help Americans who want to guarantee the privacy of their e-mail and other electronic information. The White House said U.S. companies can begin selling high-tech tools overseas that use the so-called 56-bit Data Encryption Standard or its equivalent, which has an unlocking key with 72 quadrillion possible combinations. The government imposes limits on exports of the most powerful scrambling technology — now anything above 56-bit — because it fears that authorities, even with a judge's permission, won't be able to read the messages of criminals or terrorists. The export limits do not directly affect Americans, who are legally free to use encryption technology of any strength. But U.S. companies are reluctant to develop one version of their technology for domestic use and a weaker overseas version, so they typically sell only the most powerful type that's legal for export, even to Americans. Vice President Al Gore called the new rule's balance between privacy and not helping criminals "probably one of the single-most difficult and complex issues that you can possibly imagine.'' "We must ensure that new technology does not mean new and sophisticated criminal and terrorist activity,'' Gore said. "And we must ensure that the sensitive financial and business transactions that now cruise along the information superhighway are 100 percent safe in cyberspace.'' Privacy advocates, though, derided Wednesday's announcement as a modest step, noting that a non-profit group of researchers demonstrated earlier this summer it can unscramble a 56-bit coded message in just days. Experts have suggested that scrambling sensitive e-mail or online credit-card transactions using less than 90 bits is vulnerable, while most experts consider 128-bit encryption practically unbreakable. Some companies that sell encryption products nonetheless praised the announcement. The president of the Business Software Alliance, Robert Holleyman, called it "a significant improvement over what we have today.'' The administration previously limited the export of 40-bit encryption technology, which has more than 1 trillion combinations. "It's a step but it's a small step,'' said Alan Davidson, an encryption expert for the Washington-based Center for Democracy and Technology. "We're worried that 56 bits is not enough.'' Barry Steinhardt, president of the Electronic Frontier Foundation, a San Francisco-based civil liberties group, said: "We assume this is done to throw a bone to industry at a time when the administration needs all the friends it can get.'' "But it's half a step, and it continues to rely on dangerous technologies,'' he said. The White House also said Wednesday that it will allow U.S. companies to use unlimited-strength encryption to communicate with their subsidiaries in all countries except seven terrorist nations: Iran, Iraq, Libya, Syria, Sudan, North Korea and Cuba. It also agreed to allow U.S. encryption companies to sell the most powerful scrambling tools overseas to insurance companies and health and medical organizations in more than 40 countries. And the administration said it will establish a technical support center for federal, state and local authorities who might be confronted with criminals using encryption. In June, the Electronic Frontier Foundation used a custom-built computer worth less than $250,000 to crack a 56-bit encrypted message in less than three days to win an industry contest. The EFF published a book describing exactly how to build a replica of its code-breaking computer. © 1998 Associated Press. All rights reserved. ----------------------- NOTE: In accordance with Title 17 U.S.C. section 107, this material is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml ----------------------- ********************************************** To subscribe or unsubscribe, email: majordomo@majordomo.pobox.com with the message: (un)subscribe ignition-point email@address ********************************************** www.telepath.com/believer **********************************************