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[Anonymous User <nobody@soda.berkeley.edu>]

BSA Business software Alliance
NEWS RELEASE

FOR IMMEDIATE RELEASE
Wednesday, July 20, 1994

FOR ADDITIONAL INFORMATION
Diane Smiroldo, 202.872.5500

BSA PRESIDENT ROBERT HOLLEYMAN REACTION STATEMENT TO
VICE PRESIDENT GORE'S LETTER TO REP. CANTWELL ON ENCRYPTION

"On behalf of the leading American PC software companies, BSA commends 
Rep. Maria Cantwell for her success in convincing the administration to 
change its policy on encryption. Following extensive negotiations with 
Rep. Cantwell, today Vice President Gore announced that the 
administration will work with industry to develop a new key escrow 
encryption system. This new encryption system has the potential for 
wide-spread use because it will be practical, affordable, and trustworthy.

"The administration has recognized that Clipper Chip will not be used 
for computers. It has been recognized that the information security 
system for personal computers must be privately developed and 
controlled. The administration has agreed that the new encryption 
system must be voluntary, software implementable, based on a 
non-classified encryption formula, exportable, and employ private 
sector agents to hold the keys.

"The administration also agreed to support periodic studies assessing 
the availability and impact of foreign encryption programs on American 
companies. Recognizing the economic importance of the software 
industry, the administration pledged the active participation of the 
National Economic Council and the Department of Commerce in the 
studies. The Vice President agreed that the studies will lay the 
groundwork to reassess existing export controls.

"Today's agreement is a significant victory both for U.S. software 
companies and the future of the global information superhighway. U.S. 
software companies must be permitted to compete on a level playing 
field with foreign vendors who already provide security on software 
programs. High tech industries are indebted to Rep. Cantwell for her 
leadership in convincing the administration to adopt a new approach and 
potentially end the disruptive war on encryption policy."

#

BSA promotes the continued growth of the software industry through its 
international public policy, education, and enforcement programs in the 
U.S. and more than 55 other countries throughout North America, Asia, 
Europe, and South America. BSA represents the leading U.S. publishers 
of PC software including Aldus, Apple Computer, Autodesk, Intergraph, 
Lotus Development, Microsoft, Novell, and WordPerfect.



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