Legislative and Judicial Update

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
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