MasterCard Seeks Revision in On-Line Bill

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A MasterCard International official told a congressional committee 
Wednesday that encryption technology is "vital to the development and 
security" of a number of its products, including its smart card program.

Joel Lisker, MasterCard International senior vice president for security 
and risk management, testified in support of the "Promotion of Commerce 
On-Line an the Digital Era Act" bill.

But he urged that the legislation be amended to address security concerns 
arising from the resale and reexportation of encryption technology.

The bill, sponsored by Sen. Conrad Burns, R-Mont., would allow the 
unrestricted exportation of mass-market or public-domain encryption 
programs and permit the exportation of encryption technologies if similar 
programs are available outside the United States.

Encryption permits a message to be changed into a code that will keep 
information inaccessible to persons not authorized to have that information.

The bill would promote "cryptographic competition" by making it easier 
for U.S. companies to export encryption technology and remain competitive 
with foreign firms that can sell their products freely here, Mr. Lisker 
observed.

But Mr. Lisker urged that the bill be amended to increase the penalties 
for the rexportation and resale of this technology to questionable 
buyers, including criminals. "Modernizing the federal regulatory approach 
to encryption technology must be accomplished without weakening the 
ability of law enforcement agencies to pursue criminal activity," he 
testified.

Also submitting testimony at Wednesday's hearing before the Senate 
Subcommittee on science, technology, and space were representatives from 
Lotus, Netscape, Electronic Data Systems Corp., and America Online.


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