WSJ on Crypto Push

[John Young <jya@pipeline.com>]

   WSJ, April 29, 1996

   Software-Scrambling Proponents Pushing To Ease Export Curbs

   New York -- Champions of encryption software -- computer
   programs that scramble data to thwart eavesdroppers -- this
   week will step up efforts to loosen export restrictions on
   the technology.

   Sen. Conrad Burns (R., Mont.) is expected to introduce
   tomorrow a bill that would ease the federal government's
   export rules. At the same time, industry-trade groups and
   privacy advocates will seek grass-roots support via the
   Internet.

   Current regulations limit the export of encryption software
   to weak systems that are presumed easy for intelligence and
   law-enforcement organizations to crack. The Clinton
   administration has opposed the sale of stronger systems,
   saying terrorists or other foes could use them to conduct
   operations without being monitored.

   But technology executives contend these regulations hamper
   their ability to compete overseas. And because the
   regulations govern any software that incorporates the
   technology to keep data secure, they can impede exports of
   electronic-mail systems, World Wide Web software and other
   Internet-related packages.

   "Right now, the industry is just wondering whether the
   administration will deal with this before we start losing
   market share," said D. James Bidzos, chief executive
   officer of RSA Data Security Inc., a Redwood City, Calif.,
   concern that supplies encryption software.

   The new bill would give software makers free rein to sell
   scrambling systems overseas as long as the same systems are
   widely available in the U.S. Other encryption technologies
   could be exported as well if similar products are already
   generally available outside the U.S.

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