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Technology Stocks : USRX /COMS - and other "stuff"
COMS 0.00130-87.0%Nov 7 11:47 AM EST

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To: Scrapps who wrote (4904)6/5/1997 10:57:00 AM
From: Glenn D. Rudolph   of 5244
 
Computer titans urge Clinton drop scrambling curbs Reuters Story - June 04, 1997 19:45 FINANCIAL BUS ENT US WASH NEWS POL CRIM DPR PUB TEL MSFT V%REUTER P%RTR By Jim Wolf WASHINGTON, June 4 (Reuter) - Computer industry captains called on President Bill Clinton on Wednesday to drop efforts to regulate data-scrambling technologies, a move the FBI warned would cripple law enforcement and leave the country more vulnerable to terrorism. In an open letter to Clinton, William Gates, chairman ond chief executive officer of Microsoft , and 12 other industry titans said U.S. competitiveness in electronic commerce was at stake in the debate. "Network users must have confidence that their communications, whether personal letters, financial transactions or sensitive business information, are secure and private," they wrote. Access to computer programs with strong data-scrambling, or encryption, capabilities was "critical to providing this confidence," said the corporate chiefs who banded together as the Business Software Alliance, an industry trade group. Even as they argued at a news conference against export controls on encryption programs, FBI Director Louis Freeh told Congress that the United States was at an "historical crossroads" on the issue. "Uncrackable encryption will allow drug lords, terrorists, and even gangs to communicate with impunity," Freeh told a Senate Judiciary Committee oversight hearing on the FBI. He said the government needed a kind of mathematical "key recovery" system in which a spare key, or decoder, for encrypted information is held in escrow by a trusted third party. In theory this sort of escrowed "key" would give law enforcement authorities the ultimate ability to unscramble communications only if authorized to do so by a court. "Other than some kind of key recovery system, there is no technicial solution," Freeh testified. He said the widespread use of strong encryption without an escrowed key "will devastate our ability to fight crime and prevent terrorism." "If public policymakers act wisely, the safety of all Americans will be enhanced for decades to come. But if narrow interests prevail, law enforcement will be unable to provide the level of protection that people in a democracy properly expect and deserve," Freeh said. In their letter to Clinton, the computer chiefs said governments should not impose import or export controls on encryption products nor "attempt to force use of government-mandated key management infrastructures." Although no laws stop Americans from using any type of data-scrambling program within the United States, export regulations let companies export only a relatively weak form of encryption. Earlier this year the Clinton administration began allowing companies to export stronger encryption technology so long at it involved a spare key, possibly even held outside the United States. Congress is considering several bills, strongly backed by the software industry, to all but eliminate the export controls. In addition to Miscrosoft's Gates, signing the letter to Clinton were the heads of Adobe Systems, Autodesk, Bentley Systems, Compaq, Intel, SCO, Symantec, Claris, Digital Equipment, Lotus Development, Novell and Sybase.
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