EC Ministers Draw Up European Online Policy August 5, 1997 Newsbytes : by Steve Gold. Following on from a conference held in Germany last month, representatives from 39 European countries have signed a declaration calling for the free flow of information. The event, held between July 6-8 in Bonn, was called "Global Information Networks: Realizing the Potential," and was attended by 39 European ministers, as well as European Commission (EC) representatives from Japan, Russia, the US and Canada. At the event, ministers focused on two main issues: encryption, and the censorship of illegal material such as child pornography on the Internet. The declaration notes that there are a number of important differences between US and Europe on encryption and information privacy. According to MacRoberts, the Edinburgh, Scotland-based information technology (IT) law firm, the declaration may not go down too well in US circles, since it is conceivable that the EC may block US-based businesses from conducting electronic commerce on the Internet. According to officials with MacRoberts, this could result in European becoming isolated, rather than the EC teaching the US a lesson. According to MacRoberts, the Bonn declaration calls for the free flow of information, whilst protecting the privacy of data, and a clear division of legal responsibility between the creators of Internet content and access providers, network operators and other intermediaries. In addition, the declaration calls for the recognition of the necessity of strong encryption technology, to facilitate electronic commerce subject to "applicable law," and the introduction of consumer protection through self- regulation. According to Joanna Noag-Thomson, an associate in MacRobert's Intellectual Property and Technology Law Group, the declaration deals with many of the issues in President Clinton's "Framework for Global Electronic Commerce" and, while the US and Europe appear to agree on many fundamental issues, important policy differences continue to exist, particularly in the areas of information privacy and encryption. "The European stance on encryption is to be commended -- the European Ministers' view is more commercially acceptable in that it recognizes that electronic commerce requires strong encryption technology," she said. "At the same time, it recognizes that measures to restrict encryption should be proportionate At present, the US and Europe appear to have different views on what constitutes `proportionate' restrictions," she added. According to Boag-Thomson, the EC has warned that, unless the US provides adequate protection of personal information, it may block any US-based entity from conducting electronic commerce on the Internet. "The EU Data Protection Directive forbids data flow to countries outside the EU which do not offer adequate protection of personal information. Although data protection is extremely important, I hope that we in Europe will not find ourselves isolated from the rest of the world and that a solution to this problem can be found," she said. (19970804/Press Contact: Joanna Boag-Thomson +44-141-332-9988; Fax +44-141-332- 8886; E-mail: joannab@macroberts.co.uk