63 Groups Criticize Oxley/Manton Amendment in Letter to Capitol Hill

The diversity of interests represented among the signatories illustrates a fundamental point -- what's at stake in this debate is whether the Internet will remain an open, decentralized medium or one in which the government will exert direct control over the design and implementation of specific technologies.

The signatories argue that the Oxley/Manton amendment is a direct threat to privacy, security, innovation, the development of the telecommunications infrastructure, and the free flow of information.

September 22, 1997

The Hon. Thomas J. Bliley, Jr.
Chairman
House Commerce Committee
2125 Rayburn House Office Building
Washington, D.C. 20515

Dear Chairman Bliley:

We are writing to express our strong opposition to the Oxley-Manton amendment to HR 695, the Security and Freedom through Encryption Act (SAFE), which the Commerce Committee will consider this week, and to any form of government domestic controls on encryption.

The Oxley-Manton amendment would impose unprecedented restrictions on the domestic manufacture and availability of encryption, thus potentially compromising the security of the nation's telephone system and the Internet alike. The amendment would:

• prohibit the domestic manufacture, sale and importation of any encryption product or service unless the government is given immediate access to the plaintext of communications and stored files without the knowledge of the user;

• prohibit network service providers, including telephone companies and Internet service providers, from offering encryption products or services unless communications can be immediately read without the knowledge of the user; and

• give the Attorney General unprecedented, broad new powers to establish standards for encryption products and services.

Encryption technologies are the vital tools consumers and businesses need to operate with security and privacy in the information age, and are a cornerstone of electronic commerce. Government domestic controls on encryption are incompatible with the consumer, corporate, and national security benefits of the national information infrastructure. Numerous communications products and services are now under development that incorporate encryption as an essential feature. Oxley-Manton will stifle these new products and services, end the deployment of market-driven key recovery systems, and undermine the potential of the new communications media for electronic commerce and the promotion of democratic values.

• Strong encryption will not only ensure privacy but also help prevent crime on the network. However, by mandating trap doors in all domestic encryption products and communications networks, the Oxley-Manton amendment will make the personal records and communications of individuals and businesses more vulnerable to hackers, terrorists, industrial spies and other criminals. Put at risk will be medical records, tax returns, private email, business proprietary information and transactions, attorney-client communications, and cellular phone conversations.

• Oxley-Manton's broad requirement for "immediate access" to decryption keys without knowledge of the user would force Americans to forfeit their constitutional right of privacy as a condition of participating in the information age.

• Oxley-Manton invites disastrous industrial policy. It is industrial policy with criminal sanctions attached. The amendment authorizes the Attorney General to promulgate technical requirements for all encryption products and gives the Department of Justice prior approval authority over all encryption systems for computers and telecommunications. This will stifle innovation. It will drive encryption expertise out of this country. The market should be allowed to develop its own solutions, many of which in fact will meet law enforcement's needs within our existing system of legal authorities and safeguards.

• Oxley-Manton will be ineffective in keeping strong encryption out of the hands of criminals. Criminals and terrorist groups will not use a system that gives the government access to their decryption keys. In fact, the FBI has admitted in Congressional testimony that criminals will always have access to strong, unbreakable encryption.

ACL Datacom, Inc., California
American Electronics Association
American Automobile Manufacturers Association
Americans for Tax Reform
America Online, Inc.
Ameritech
ANS Communications, Inc., New York
Apple Computer, Inc.
Ashton Communications Corp., California and Texas
Bell Atlantic
Bell South
Bowles Farming Co., Inc.
Business Software Alliance
Center for Democracy and Technology
Commercial Internet eXchange Association
CommerceNet
Compaq Computer Corp.
CompuServe, Inc.
Computer & Communications Industry Association
Computer Software Industry Association
Consumer Electronic Manufacturers Association
Counsel Connect
Crest Industries, Inc.
DataXchange Network, Inc.
Direct Marketing Association
Electronic Data Systems, Corp.
Electronic Frontier Foundation
Electronic Messaging Association
Epoch Internet
Fiber Network Solutions, Inc., Columbus, Ohio
Genuity Inc., a Bechtel company
IBM Corp.
Information Technology Association of America
Information Technology Industry Council (ITI)
Institute of Electrical and Electronics Engineers - US Activities
International Communications Association
Intuit Inc.
Internet Providers Association of Iowa
Microsoft
NETCOM On-Line Communication Services, Inc.
NetINS, Inc., Iowa
Novell
Online Banking Association
National Association of Manufacturers
National Retail Federation
Netscape Communications Corp.
Phoenix Media/Communications Group
Pro-Trade Group
PGP, Inc.
RSA Data Security, Inc.
SBC Communications Inc.
Securities Industry Association
Silicon Valley Software Industry Coalition
Software Forum
Software Publishers Association
Sun Microsystems, Inc.
TheOnRamp Group, Inc., Ohio
Trusted Information Systems
United States Council for International Business
United States Internet Council
United States Telephone Association
U.S. Chamber of Commerce
US West
Utah Digital Signature Program, Utah Dept. of Commerce *
Vermont Secretary of State *
Voters Telecommunications Watch

* Signed on after letter had been delivered to the Committee members

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