SPA Expresses Concern About Government's Encryption Announcement

April 167 1993 (Washington, DC)--The Software Publishers Association (SPA)
today welcomed the Clinton/Gore Administration's decision to conduct a
broad policy review on the use of encryption in a digital information
world with a national information infrastructure However, SPA expressed
concerns about the Administration's announcement of a new scheme for the
encryption of telephone conversations, which relies on a secret
Government-developed encryption code, the key to which will be held by as
yet unidentified third parties.

"We are concerned that the Administration may have reached a conclusion on
the encryption issue before its study is even under way. Although today's
announcement was about encrypted telephone conversations, the
Administration's proposal would seem to cover all computer data and
facsimile communications," explained Ken Wasch, SPA Executive Director.

SPA's General Counsel, Ilene Rosenthal explained "The requirement to place
the keys to an encryption code in "escrow" with third parties is a major
decision that should only come at the end of extensive study and
review--not before. Moreover, this scheme appears to be at odds with
recent commercial developments regarding public/private key encryption
systems."

SPA raised several serious questions about the Government's proposed
scheme:

* If the Government-developed algorithm is classified, how will businesses
and individuals know how the algorithm compares to commercially available
systems such as DES, or that there is not a secret "back door' built in so
that the Government can monitor all communications?

Who will hold the secret keys to the encryption codes--and how will the
Government ensure that no one else will be able to get the codes from
them?

* How does the proposed scheme comport with existing statutory protections
and the Constitution?

* How will the proposed scheme affect the international competitiveness of
US products that contain encryption?

"The Government seems to have gotten out in front of itself a bit," said
Wasch. "We are concerned that the Government may have prejudged a solution
with wide-ranging implications."

The Software Publishers Association is the principal trade association of
the PC software industry. Its more than 1000 members represent the leading
publishers in the business, consumer, and education markets. The SPA has
offices in Washington, D.C., and Paris, France.

Software publishers Association
1730 M St, Northwest, Suite 700, Washington, D.C. 20036
202-452-1600,  Fax: 202-223-8756

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