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   The Center for Democracy and Technology  /____/     Volume 3, Number 13
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      A briefing on public policy issues affecting civil liberties online
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 CDT POLICY POST Volume 3, Number 13                    September 8, 1997

 CONTENTS: (1) New FBI Draft Crypto Bill Would Force Mandatory Key Recovery
           (2) Text of FBI Proposal
           (3) What You Can Do
           (4) How to Subscribe/Unsubscribe
           (5) About CDT, contacting us

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_____________________________________________________________________________

(1) NEW FBI DRAFT ENCRYPTION LEGISLATION WOULD IMPOSE MANDATORY KEY RECOVERY

In its most audacious crypto proposal yet, the FBI is circulating on Capitol 
Hill legislation to impose full domestic controls on the manufacture and use 
of encryption.  The FBI is seeking support for its proposal among two crucial 
House Committees preparing to consider encryption legislation this week.  

The text of the key section of the FBI draft is attached below.

The FBI draft would take two extraordinary steps. It would prohibit the 
manufacture, sale, import or distribution within the United States of any 
encryption product unless it contains a feature that would create a spare key 
or some other trap door allowing "immediate" decryption of any userÍs messages 
or files without the userÍs knowledge.

In addition, it would require all network service providers that offer 
encryption products or services to their customers to ensure that all messages 
using such encryption can be immediately decrypted without the knowledge of 
the customer.  This would apply to telephone companies and to online service 
providers such as America Online and Prodigy.

In the FBI draft, the "key recovery capability" could be activated by the 
purchaser or end user.  But requiring that such a capability be installed in 
all domestic communications networks and encryption products would be the 
critical step in enabling a national surveillance infrastructure.
	
The proposal requires the Attorney General to set standards for what are and 
are not acceptable encryption products. The proposal's requirement of 
"immediate" decryption would seem to seriously limit the options available to 
encryption manufacturers seeking approval of their products.

While export of encryption products from the United States has long been 
restricted, there have never been controls on the manufacture, distribution, 
or use of encryption within the United States.

Pending before the House Intelligence and National Security Committees is the 
Security and Freedom through Encryption Act (SAFE, HR 695), sponsored by Rep. 
Goodlatte (R-VA), which would lift current export controls on encryption 
technology. The Goodlatte bill has already been reported favorably by the 
House Judiciary and International Relations Committees.  The House National 
Security Committee is scheduled to consider HR 695 on Tuesday, September 9. 
The House Intelligence Committee has scheduled its vote for September 11. 
Members of both committees are expected to consider the FBI draft as a 
substitute to the SAFE bill.

This FBI proposal represents a major turn-around for the Clinton 
Administration, which has denied since its first year that it was seeking 
domestic controls on encryption.

The FBI proposal is an attempted end run around the Constitution.  By creating 
an avenue for immediate access to sensitive decryption keys without the 
knowledge of the user, the proposal denies users the notice that is a central 
element of the Fourth Amendment protection against unreasonable searches and 
seizures.  Just this past April, the Supreme Court reaffirmed that the Fourth 
Amendment normally requires the government to advise the target of a search 
and seizure that the search is being conducted.

Forcing U.S. citizens and companies to adopt so-called key recovery systems 
poses serious security risks, especially when the systems can be accessed 
without the knowledge of the users.  A recent study by 11 cryptography and 
computer security experts concluded that such key recovery systems would be 
costly and ultimately insecure (see http://www.crypto.com/key_study)

CDT executive director Jerry Berman said of the latest proposal, "This is not 
the first step towards the surveillance society. It *is* the surveillance 
society." 

______________________________________________________________________________

(2) TEXT OF MANDATORY KEY RECOVERY SECTION OF FBI DRAFT LEGISLATION      
    (From FBI "Technical Assistance Draft" Dated August 28, 1997)

SEC. 105. PUBLIC ENCRYPTION PRODUCTS AND SERVICES

(a)    As of January 1, 1999, public network service providers offering 
encryption products or encryption services shall ensure that such products or 
services enable the immediate decryption of communications or electronic 
information encrypted by such products or services on the public network, upon 
receipt of a court order, warrant, or certification, pursuant to section 106, 
without the knowledge or cooperation of the person using such encryption 
products or services.

(b)    As of January 1, 1999, it shall be unlawful for any person to 
manufacture for sale or distribution within the U.S., distribute within the 
U.S., sell within the U.S., or import into the U.S. any product that can be 
used to encrypt communications or electronic information, unless that product 
-

       (1) includes features, such as key recovery, trusted third party
       compatibility or other means, that

           (A) permit immediate decryption upon receipt of decryption
           information by an authorized party without the knowledge or
           cooperation of the person using such encryption product; and
  
           (B) is either enabled at the time of manufacture, distribution,
           sale, or import, or may be enabled by the purchaser or end user; or

       (2) can be used only on systems or networks that include features, such
       as key recovery, trusted third party compatibility or other means, that
       permit immediate decryption by an authorized party without the     
       knowledge or cooperation of the person using such encryption product.

(c)  (1) Within 180 days of the enactment of this Act, the Attorney General
     shall publish in the Federal Register functional criteria for complying
     with the decryption requirements set forth in this section.

     (2) Within 180 days of the enactment of this Act, the Attorney General
     shall promulgate procedures by which data network service providers and
     encryption product manufacturers, sellers, re-sellers, distributors, and
     importers may obtain advisory opinions as to whether a decryption method
     will meet the requirements of this section.

     (3) Nothing in this Act or any other law shall be construed as requiring
     the implementation of any particular decryption method in order to 
     satisfy the requirements of paragraphs (a) or (b) of this section.

______________________________________________________________________________

(3) WHAT YOU CAN I DO TO HELP?

Are you concerned about protecting privacy and security in the information 
age? Curious what your Member of Congress thinks about the issue? 

  Adopt Your Legislator! Visit http://www.crypto.com/adopt for details

You will recieve customized alerts with news you can use, inlcuding the latest 
information on internet-related issues, the views of your Representative and 
Senators, and contact information to help you ensure your voice is heard in 
the ongoing debate over the future of the Information Age.  

Visit http://www.cdt.org/crypto or http://www.crypto.com/ for detailed 
background information on the encryption policy reform debate, including the 
text of various legislative proposals, analysis, and other information.

_____________________________________________________________________________

(4) SUBSCRIPTION INFORMATION

Be sure you are up to date on the latest public policy issues affecting
civil liberties online and how they will affect you! Subscribe to the CDT
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publication of the Center For Democracy and Technology, are received by
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activists, and have become the leading source for information about
critical free speech and privacy issues affecting the Internet and other
interactive communications media.

To subscribe to CDT's Policy Post list, send mail to

     policy-posts-request@cdt.org

with a subject:

     subscribe policy-posts

If you ever wish to remove yourself from the list, send mail to the
above address with a subject of:

     unsubscribe policy-posts
_____________________________________________________________________________

(5) ABOUT THE CENTER FOR DEMOCRACY AND TECHNOLOGY/CONTACTING US

The Center for Democracy and Technology is a non-profit public interest
organization based in Washington, DC. The Center's mission is to develop
and advocate public policies that advance democratic values and
constitutional civil liberties in new computer and communications
technologies.

Contacting us:

General information:  info@cdt.org
World Wide Web:       URL:http://www.cdt.org/
FTP                   URL:ftp://ftp.cdt.org/pub/cdt/

Snail Mail:  The Center for Democracy and Technology
             1634 Eye Street NW * Suite 1100 * Washington, DC 20006
             (v) +1.202.637.9800 * (f) +1.202.637.0968

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End Policy Post 3.13                                               09/08/97
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