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Technology Stocks : VeriSign (VRSN) -- Ignore unavailable to you. Want to Upgrade?

To: zx who wrote (854)	1/13/2000 10:56:00 AM
From: Patriarch	Read Replies (1) \| Respond to of 1285

Looser U.S. Encryption Export Rules Due Thursday Wednesday January 12 7:40 PM ET WASHINGTON (Reuters) - The Clinton administration on Thursday will dramatically reduce export limits on computer data-scrambling technology, aiding sales of most U.S.-made products that include encryption such as Internet software, computer networking equipment and telecommunications gear. The new rules also fulfill a White House promise from September to dramatically relax the previously restrictive encryption export rules. U.S. high-technology companies, along with Internet and privacy advocacy groups, have been pushing for the changes for years arguing that encryption was needed to protect the security of communications and electronic commerce. But law enforcement and national security agencies resisted, fearing that encryption would get into the hands of criminals. Secretary of Commerce William Daley said the new rules were a reflection of the growing competition from non-U.S. high-technology companies. ``This policy helps business and promotes e-commerce by adjusting our regulations to marketplace realities that U.S. companies face when they try to sell their products overseas,' Daley said in a statement. ``We've also worked very hard to address privacy concerns and to ensure that our law enforcement and national security concerns are met.' Under the old rules, any product containing strong encryption was subject to export limits and reporting requirements that virtually ruled out export sales of widely available products. The new rules allow sales of retail products -- those commonly sold in stores or over the Internet -- to be exported after a one-time filing with the government. Exports were still prohibited to customers in the seven nations accused of sponsoring terrorism such as Libya. Industry officials, who had complained about an earlier draft of the new regulations, said the rules met their needs. ``With these regulations, we will no longer be at a competitive disadvantage,' said Robert Holleyman, president of the Business Software Alliance, a trade group that includes Microsoft Corp. (NasdaqNM:MSFT - news), Adobe Systems Inc. (NasdaqNM:ADBE - news) and International Business Machines Corp.'s (NYSE:IBM - news) Lotus unit. ``It's going to help us with sales abroad because security is becoming increasingly important to our customers,' said Piper Cole, vice president at Sun Microsystems.(NasdaqNM:SUNW - news) Privacy and Internet groups welcomed the new rules but were less enthusiastic. While the rules allow easy export of mass market software sold in stores, complex restrictions still affect programrs and others who want to exchange programs or source code to write programs. ``The good news is that consumers all over the world will have access to the strongest encryption built into products they use every day...and that is good for privacy,' said Alan Davidson, staff counsel at the Center for Democracy and Technology. ``The bad news is, if you want to send an encryption program outside of the United States, you still need to hire a lawyer,' Davidson added. He and others had hoped the new rules would make it easier for researchers and programrs to post on the Internet encryption programs and source code for writing programs. The new rules also sought to address the growing ``open source' movement of computer programrs, such as those using the Linux operating system, who make available the underlying source code of their programs. Under the new rules, if source code is publicly available and no royalty is charged for its use, the code would not be subject to export restrictions. People posting ``open source' programs would be required to send the code, or a Web site address where the code was displayed, to the government.