Legislative and Judicial Update

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Encryption

The Commerce Department has proposed new regulations for the export of encryption products.  The proposal, which further clarifies a recent announcement by President Clinton, would allow the unlimited export of encryption products to certain types of organizations.  Those organizations allowed to receive export of encryption products, regardless of key length, are subsidiaries of U.S. companies and foreign commercial firms that are insurance companies, health and medical end-users, and online merchants.  For any other uses, the proposed regulations allow the export of encryption hardware and software of up to 56 bits without a license after a one-time technical review. 

Comments on the proposal, which must be received by March 1, 1999, should be sent to:

Nancy Crowe
Regulatory Policy Division
Bureau of Export Administration
Department of Commerce
P.O. Box 273
Washington, D.C. 20044