Encryption and U.S. Export Policies of Cryptographic Products Clipper 3.1.1

By Jason Klindtworth
Fall 1996

I. INTRODUCTION

The importance of computers in today's information cannot be overstated. In the past, large, expensive mainframe computer systems were the norm. These systems were only available to the largest of businesses that could afford their lofty price tag as well as the number of programmers it took to keep the systems running. Banking and insurance industries, research institutions and the US government were common recipients of such systems. The average citizen did not even consider owning a computer since there was no need for one. Today, however, the computing paradigm is radically different. Although there exists a small niche in industry that still demands the power of mainframe computers, they have all but been phased out by the personal computer and recent progress in parallel computing.<1> As the personal computer becomes ubiquitous, society's reliance upon them seems to approach absolute. Whether we talk about sending or receiving electronic mail, facsimiles referred to commonly as "faxes", or even "surfing the web", computer technology and advanced telecommunications equipment have arguably made electronic communications easier, and information more accessible. Unfortunately, if data is easily accessible by one, it is most likely accessible by another, which may not always prove to be an ideal situation.

Whether electronic data transfers take place over a closed, point-to-point connection such as a BBS<2>, or they occur over the Internet, and regardless of whether a MODEM<3> is used, the security and integrity of one's data is always in jeopardy. Without proper precautions, electronic messages and data transferred over the Internet is prey to wanting criminals. Such data can easily be intercepted in transit by an unauthorized party, copied, and then passed on to the rightful recipient without either party realizing what had happened, or alternatively the data may be intercepted and never ultimately make it to its intended destination. The would-be "electronic-hijacker" could then make use of the stolen data at their leisure without leaving much of a trail for authorities to trace. Imagine if credit card information, personal medical records, business contracts and trade secrets, not to mention highly classified government information were to fall into the possession of criminals. This does in fact happen, and the problem is that most people don't realize when a crime has been committed. With the burgeoning of the Internet and increased demand for security, the use of encryption to ensure secure electronic communications has been adopted by average citizens, organizations and businesses world-wide. Encryption is no longer a practice employed solely by armies and diplomatic corps around the world.<4> Realizing this, the US government now more than ever must balance the encryption policy concerns of domestic law enforcement and national security agencies, against the range of concerns expressed by private US citizens and industry. One unfortunate side effect of the rapidly growing popularity of encryption technology has been the government's inability to maintain a viable, up-to-date encryption technology export policy which properly balances the needs of both the government and the private sector. On October 1, 1996, in efforts to relieve some of the public pressures, President Clinton issued an executive order announcing a new encryption export policy. Much controversy surrounds this policy, and there are currently three bills pending in congress which all address this issue; They include: the SAFE act, the encrypted communications privacy act, and the Pro-CODE act. This paper talks more about encryption technology and its origins, past encryption legislation and the viability of the proposed legislation.

A. What is Encryption?

Encryption in its simplest form is the transformation of readable "plaintext" data into an unreadable format called "ciphertext."<5> The main purpose of encryption is to ensure privacy by keeping data from being read by people to whom it is not intended. Even if an unauthorized party were to obtain the encrypted data, it would be unusable without first being decrypted. Decryption transforms encrypted data back into some intelligible form. Encryption and decryption both require the use of secret information to control access to the data. This secret information is usually referred to as keys,<6> which are actually strings of alphanumeric digits that get plugged into mathematical algorithms during the encryption process. Depending on the encryption mechanism used, the same key may be required to both encrypt and decrypt messages, or two separate keys, one for encryption and another for decryption, may be required.

B. Brief History - Origins

Codes<7> and ciphers<8> have been around for thousands of years. In fact, Julius Caesar used a very simple letter substitution cipher for his military communications. He would replace the nth letter in the alphabet with the n+kth letter.<9> The problem with this routine is that there are only 26 possible offsets in the English alphabet to try which presents a trivial problem to a code breaker. Through the years, many techniques have been developed to encrypt data and many more will continue to be introduced. Perhaps it is worth digressing to note one of the oldest twentieth century encryption machines and the efforts that went into breaking the code created by that machine.

The code was called Enigma and it was developed by the German armed forces during World War II. The Enigma cipher machine that created the code was an electromechanical keyboard machine that used multiple rotors wired in different ways to establish letter translation tables.<10> The machine would step the rotors after each letter was enciphered. The German army's version of the Enigma had three rotors with 26 letter positions each and a patch panel. The German naval Enigma had more letter positions to allow for umlauted characters, and one could select three rotors from a set of five. Later in the war the machine was improved so as to allow a choice of four rotors from a set of nine. Cracking the German naval Enigma messages was especially difficult, however, the Allies eventually obtained Enigma machines, monthly key tables, and code books, which allowed them, with the help from the people of Bletchley Park, to break the code.

Much of the code-breaking work was done in Bletchley Park, England under the leadership of Alan Turing. Alan Turing is well known for devising the conceptual "universal Turing Machine" computer in the course of developing a proof of Godel's undecidability theorem.<11> Reading Enigma messages was brutally hard work. Much of the success at Bletchley is attributable not only to Turing, but to two breakthroughs by Polish Mathematician Marian Rejewski. Rejewski developed a mathematical model of the Enigma that allowed the stepping mechanisms and wiring of the rotors to be solved algebraically, as well as an electromechanical device called a bombe.<12> The bombe measured nearly ten feet wide and eight feet tall, had gears and turning wheels, and could quickly scan through a series of Enigma settings looking for one that would decode the current message.<13> The bombe was also considered to be a very early computer, or proto-computers, and during the war the they were tended by operators who were mostly women.<14> Messages sent in the German Enigma code were handed to the women tending the 120 bombes. Using guesswork, the women guided the bombes through all the possible combinations of Enigma until they found one that created a coded message. Once they had that, they had the key for the German message traffic for that entire day.<15>

By war's end, Britain and the United states had hundreds of bombes in service. They used the information from Enigma messages to help end the dominance of German U-boat wolf packs over Allied shipping in the Battle of the Atlantic.<16> Bombes were in many ways the forerunners of modern digital computers<17> and Alan Turing with his "Turing machine" the forefather to modern digital computing.

II. THE TECHNOLOGY

A. What is Cryptology

Webster's Collegiate Dictionary defines cryptography as the "science or study of the techniques of secret writing, especially code and cipher systems...." As the field of cryptography has advanced, it has become harder to determine what is and what is not cryptography<18>. What is certain though, is that modern cryptography does involve more than secret writing, encryption and decryption.<19> Today, cryptography provides mechanisms that allow for the authentication of electronic documents including digital signatures,<20> which tie particular documents to particular keys, and digital timestamps, which bind particular documents to a discrete creation time. Cryptography is fundamentally based on problems that are difficult to solve without possessing some secret knowledge<21>. The cryptanalyst tries to solve these problems and thus compromise cryptographic mechanisms. Cryptology is the science of studying cryptography and cryptanalsis combined.<22>

B. Secret-Key Or Symmetric Cryptography

Traditional cryptography is based on the sender and receiver of data knowing and using the same secret key to encrypt and decrypt their respective data. The inherent problem with this technology is the need for both parties to have access to or know the secret key. In order for the other party to know the secret key, the key must be transmitted either electronically over a computer or telephone network, physically via a courier such as the postal service, orally via a telephone, or in person. With each of these methods there is a chance that the secrecy of the key could be compromised and the secure data could then be read, modified, or forged by an unauthorized party. Some secret-key systems<23> store the private keys in central databases that are prone to attack. Such an attack would allow widespread forgery since a user holding another's private key would be able to impersonate the other user. The data that is transferred using secret key cryptography is thus as safe as the key management system that is employed.

C. Public-Key Cryptography

The concept of Public-Key cryptography was introduced in 1976 by Whitfield Diffie and Martin Hellman<24> to solve the security concerns inherent with secret key cryptography. The primary advantage of public-key cryptography is increased security and convenience.<25> Public-Key cryptography requires the sender and receiver to each have a pair of keys. One key is referred to as a public-key and the other as a private key. The recipient's public key would be published such that anyone would have access to it, and their private key would remain secret.<26> Data that was encrypted using the recipient's public key could only be decrypted using their corresponding private key which, presumably would only be in the possession of the recipient. In this way, anyone could encrypt data but only the intended recipient would be able to decrypt it.<27> In this manner, no private keys would ever need to be transferred.

D. Digital Envelopes

Unfortunately, public-key systems have the disadvantage of being slow.<28> There are secret key cryptography systems that are significantly faster than any public-key cryptography system.<29> DES<30> for example, is 100 times faster than RSA<31> when used in software, and 1,000 to 10,000 times faster when used in hardware implementations.<32> By using a combination of public-key and private-key encryption methods together, however, one can gain the best features of both techniques. It is possible to encrypt a message quickly using a private-key encryption method and then encrypt that ciphertext again using the public-key system upon data transmission.<33> An example of a digital envelope technology implementation can be found in the very popular LOTUS Notes software which employs the use of what they have termed "cryptolopes". These are in essence cryptographic digital envelopes.

E. Digital Signatures and Timestamping

Occasionally it may be necessary to authenticate the author or verify the creation date of a digital record. Digital signatures and timestamps provide this ability. The first step in the process of either adding a digital signature or timestamp involves a certification procedure with which the author of a record can "sign" a record or bind a "time" to it. This information is stored in a certifying file or what is known as a certificate.<34> The second step requires a verification procedure by which any user can check a record and its corresponding certificate to confirm that either the sender is who they claimed to be or that a particular creation or file access date is correct. The certificate that is returned by the preceding procedure is usually called a signature. In order to be able to sign such records or documents a user must use special software to create a private-key and a public-key. After a message has been converted to binary code a computation is performed involving the sender's private key and the binary equivalent of the message. The result is considered the digital signature of the sender and is attached to the message to be sent. In order to verify the signature, the recipient would do some computation involving the message, the purported digital signature, and the public key of the sender. If the result properly holds in a simple mathematical relation, the signature is verified. If the mathematical relation does not hold, the data may have been altered or perhaps the sender was not who they claimed to be.

The validation procedure for digital timestamps is similar to that of digital signatures except the fact that digital timestamps do not rely on keys or any other secret information whereas digital signatures do. The particular certificate that is returned by the certification procedure of the digital timestamping relates to a particular record at a particular time. By using the timestamp certificate to link the digital representation of a record in question to a summary number that is unique to only that record, one can verify, upon receipt of the work that it was indeed certified at the time claimed. The verification procedure takes the particular record, the assumed timestamp certificate for that record, and a particular time, and compares it against the widely available summary number. If the numbers are the same, then the time that is being claimed is legitimate.

F. Using Digital Signatures to Detect Altered Signatures

The use of digital signatures as a replacement or supplement to a handwritten signature has drawn much attention over the past few years. There are questions as to the security and authenticity of the digital signature and not everyone is willing to accept digital signatures with open arms.

"A digital signature is superior to a handwritten signature in that it attests to the contents of the message as well as the identity of the signer."<35> "As long as a secure hash function<36> is used, there is no way to take someone's signature from one document and attach it to another or to alter a signed message in any way."<37> Any change in the digital document would cause the digital signature verification to fail. Data transmission errors just as well as forgery could cause a digital signature verification to fail. Because of the uncertainty behind the cause of a failure, it would be possible to certify a sender was who they claimed to be but not necessarily disprove that someone wasn't who they claimed to be.

III. HOW "BREAKABLE" IS IT?

There are many different methods of encrypting data available. RSA and DES are among the two most widely known and widely used encryption systems in the world<38> and so this discussion will be limited to those two systems. Even the popular encryption package PGP<39> is partly based on RSA. RSA and DES each work differently and therefore each has their own "Achille's heel."

A. RSA

An RSA operation is essentially a modular exponentiation, which can be performed by a series of modular multiplications.<40> There are a few "ways to break" RSA. The most damaging would be for an attacker to discover the private key corresponding to a given public key; this would enable the attacker both to read all messages encrypted with the public key and to forge signatures.<41> The task of recovering the private key is equivalent to the task of factoring the modulus. The security of RSA generally depends on factoring being difficult, but another way to break RSA exists as well.<42> This attack would allow someone to recover encrypted messages and forge signatures even without knowing the private key. The attack is not known to be equivalent to factoring and no general methods are currently known that attempt to break RSA in this way.<43> RSA-129 is a 129-digit (426-bit) integer that was published in Scientific American in 1977. A prize of $100 was offered to anybody who was able to factor the number. It wasn't until March of 1994 that it was factored using the resources of 1600 computers from the Internet.<44> The factoring took about 4000 to 6000 MIPS<45> years of computation over an eight-month period.<46>

There are also attacks that are aimed at beating RSA but not necessarily breaking RSA. These methods are aimed at defeating insecure implementations of RSA rather than exploiting the RSA algorithm. For example, if a private key is stored insecurely, an attacker may discover it and thus beat RSA. In order to be assured of a truly secure implementation of RSA one must do more than implement mathematical security measures such as choosing a large key size. In practice, most successful attacks will likely be aimed at insecure implementations and at the key management stages of an RSA system.<47>

B. DES

No easy attack on DES has yet been discovered. In that DES uses a block cipher,<48> the obvious method of attack is a brute-force exhaustive search of the key space. Since DES uses a 56-bit key, an exhaustive search of the key space would take 255 steps on average. Early on it was suggested that a rich and powerful enemy could build a special-purpose computer capable of breaking DES by exhaustive search in a reasonable amount of time.<49> No feasible way to break DES faster than an exhaustive search has yet been discovered though. in May, 1994, M. Weiner estimated that the cost of a specialized computer to perform an exhaustive search requiring 3.5 hours on average, would be one million dollars.<50> More recently another method of attack on DES was developed. Using linear cryptanalysis, a DES key can be recovered by the analysis of 243 known plaintexts. The first experimental cryptanalysis of DES was successfully achieved requiring 50 days on 12 Hewlett Packard model 9735 workstations.<51> Although possible, this attack is still impractical.<52>

C. What does the future hold?

Over the last fifteen years, factoring has become easier due to the increase in computing power and the development of new factoring algorithms. In the future, computer hardware will most certainly become more powerful, but hardware improvements make RSA more secure, not less secure. This is because a hardware improvement that allows an attacker to factor a number two digits longer than previously possible, will at the same time allow a legitimate RSA user to use a key dozens of digits longer than before with no performance slowdown.<53> One place that his rule may fail is when a more powerful computer of the future is used to attack a key of the past. Here, only the attacker would have the advantage of the new technology. This point argues that in order to prepare for the security demands of the future, one should use a larger key size now, and/or replace one's key with a longer key size every few years.<54> As long as hardware continues to improve at a faster rate than the rate at which the complexity of factoring algorithms decreases, the security of RSA will increase assuming that RSA users regularly increase their key sizes by appropriate amounts.<55>

The consensus regarding DES is that when used properly, it is still secure. Triple DES, or DES that has been encrypted three times is far more secure than standard DES. The block ciphers RC5 and RC2, and the stream cipher<56> RC4 are all faster than DES and all have variable key size such that the security they offer can be adjusted. The future of DES is not certain as the NIST<57> has indicated that it may not recertify DES again.<58>

D. Quantum Computing

Quantum computing is a new field in computer science that has been developed along with our increased understanding of quantum mechanics. Computers that rely on quantum computing could be exponentially faster than modern computers given certain tasks.<59> Quantum computing is based on the idea of a quantum bit or qubit. Computers as we know them today operate using bits that have a discrete range of wither zero or one.<60> The qubit can be a linear superposition of the two states, and as long as it is left alone, the different states will evolve according to some internal set of rules. "Fix the rules right, and that evolution can be a calculation."<61> "Because of superposition, a concept called quantum parallelism allows exponentially many such computations to take place simultaneously, vastly increasing the speed of computation."<62> Some say that quantum computers will be able to, in principle, do more calculations at one time than there are atoms in the universe.<63> Unfortunately, the development of a practical quantum computer is still far away because of what is called quantum decoherence. Quantum decoherence is due to the influence of the outside environment on the quantum computer.<64> If these methods can be perfected, factorization may prove simple using a quantum computing device.

IV. CONFLICTING CONCERNS

Encryption and cryptography as a whole are a double-edged sword that "shields the law abiding and the lawless equally."<65> Because of this, the US government has a vested interest in ensuring that criminals or "the lawless" do not obtain powerful encryption technology that the government can't defeat. Furthermore, "the federal government has an important stake in ensuring that its important and sensitive political, economic, law enforcement, and military information, both classified and unclassified, is protected from misuse by foreign governments or other parties whose interests are hostile to those of the United States."<66> The operability of the U.S. civilian infrastructure including the banking system, electronic power grids, Public Switched Telecommunications Network, and air traffic control is essential. Defending these assets against information warfare and crimes of theft, misappropriation, and misuse potentially conducted by hostile nations, terrorists, criminals, and electronic vandals is a matter of national security and require high levels of information protection and strong security safeguards.<67> Unfortunately a solution to these problems does not appear to be simple. The US government believes that by limiting the export of strong encryption technology out of the United States, it will be furthering national security. This may be true, but there is a fine line between ensuring national security via the control of encryption and encroaching upon American values such as one's personal rights to privacy.

A mandatory key escrow or a key recovery plan such as the one that President Clinton has announced, (see infra "Proposed Policy") presents Constitutional issues as well as economic ones. Mandatory key escrow forces users of cryptography to disclose something they would prefer to keep secret which amounts to compelled speech. Key recovery could have the same effect as mandatory key escrow if one were forced to comply with the recovery. This would happen if key recovery became a defacto standard and all who wanted to conduct business with government agencies were required to use key recovery systems. There is also the chance for government abuse which may result in unreasonable searches or seizures and thus violate the Fourth Amendment. There may be problems with the Fifth Amendment and a key recovery since giving one's key away in advance could be analogous to forcing users to disclose their secrets in advance. Another very strong argument from the public centers on the economic impact that export policies have had over the years and the impact that the new policy may have. By the government limiting cryptographic exports, they are in fact hurting many businesses in the U.S. With voluntary key recovery, International communications are still vulnerable since products sold by the dominant U.S. hardware and software manufacturers must conform to U.S. export controls. Many companies cannot afford to produce two versions of their software, one to distribute within the U.S. and one to distribute outside of the U.S., so they produce one weaker version and mass market that worldwide. Since U.S. cryptographic exports will still be controlled, it will make U.S. firms uncompetitive in a global market and the U.S. may eventually lose its lead in encryption technology development.

The United States encryption export policies, whether past, present, or those currently proposed, all raise Constitutional issues. Is there a way to balance the rights of the people as granted by the Constitution with the government's concern for national security? The debate continues.

V. PAST POLICY REGARDING ENCRYPTION USE AND U.S. EXPORT

In the past, under the International Traffic in Arms Regulations (ITAR) category 13(b)(1), the Department of State controlled exports of cryptographic products. On February 16, 1996, the Department of State amended ITAR by establishing an exemption for the temporary export of cryptographic products for personal use. The exemption did not apply to those persons contemplating sales, marketing or demonstration, nor did it apply to exports to destinations listed in Section 126.1 of the ITAR, which are prohibited by a United Nations Security Council Resolution, or to countries that have been determined to have repeatedly provided support for acts of international terrorism. The planned effect of the amendment was to ease the burden on U.S. citizens and lawful permanent residents who have the need to temporarily export cryptographic products when leaving the U.S. for brief periods of time. Until this amendment, it was unlawful for a person traveling out of the U.S. to carry cryptographic products without first obtaining proper licensing from the Department of State. This in effect meant that any person who needed or wanted to carry their laptop computer that happened to contain an installation of Netscape for example, out of the country, whether on business or for pleasure, needed to obtain a Department of State license. Such a citizen would have had to sign the computer out and back upon return to the U.S. and could not sell, market, or demonstrate the encryption installed on the computer abroad.<68> The U.S has never limited what cryptographic technology a person was able to use within the U.S., only what was exportable. The U.S. has made much progress in the past year redefining what the U.S.'s encryption export policy should be. Many critics argue that President Clinton's new plan (see infra Section VI) still does not meet the needs of the industry, yet they concede that at least some progress is being made.

VI. PROPOSED POLICY REGARDING ENCRYPTION USE AND U.S. EXPORT

On October 1, 1996, the White House released a statement by Vice President Gore announcing that the Clinton administration would relax the export restrictions on 56-bit encryption technology.<69> Along with President Clinton, Gore believes that the new policy will "support the growth of electronic commerce, increase the security of the global information, and sustain the economic competitiveness of US encryption product manufacturers during the transition to a key management infrastructure." (Press Release) Under the new policy, the export of 56-bit length encryption products will be permitted, with, however, a few limitations. A six-month general export license will be issued after one-time review and contingent upon commitments from the exporter to explicit benchmarks and milestones for developing and incorporating key recovery features into their products and services. The specific commitments will depend on the applicants line of business. Initial approval will be contingent on firms providing a plan for implementing key recovery. If all milestones are met at the end of the six-month period, the government will renew the export license for another six months. Two years from now, the export of 56-bit products that do not support key recovery will no longer be permitted. Currently exportable 40-bit mass market software products, however, will continue to be exportable. The key recovery vision presumes that a trusted party (in some cases internal to the user's organization) would recover the user's confidentiality or secret key for the user or for law enforcement officials acting under proper authority. Access to keys would be provided in accordance with destination country policies and bilateral understandings. No key length limits or algorithms will apply to exported key recovery products. Domestic use of key recovery will be voluntary, and any American will remain free to use any encryption system domestically. For export control purposes, commercial encryption products will no longer be treated as munitions. After consultation with Congress, jurisdiction for commercial encryption controls will be transferred from the State Department to the Commerce Department. The administration also will seek legislation to facilitate commercial key recovery, including providing penalties for improper release of keys, and protecting key recovery agents against liability when they properly release a key. The government will also continue to support financial institutions in their efforts to assure the recovery of encrypted financial information. Longer key lengths will continue to be approved for products dedicated to the support of financial applications.

A. Further Measures

On November 15, 1996, Vice President Gore announced that President Clinton has taken two significant actions to implement the encryption liberalization plan announced in October.<70> First President Clinton signed an executive order directing the transfer of jurisdiction for the export control of commercial encryption products from the State Department to the Commerce Department. The transfer will become effective upon the promulgation of regulations by the Commerce Department, which is expected before the end of 1996. Second, President Clinton has designated Ambassador David L. Aaron as Special Envoy for Cryptography. As Special Envoy for Cryptography, Aaron will have the responsibility "to promote the growth of international electronic commerce and robust, secure global communications in a manner that protects the public safety and national security."

VII. PROPOSED LEGISLATION

A total of three pieces of legislation are currently pending in Congress. Senators Burns and Leahy introduced S.1587 entitled the "Encrypted Communications Privacy Act of 1996" and Representatives Goodlatte, Delay and 28 other representatives introduced the House of Representatives counterpart, H.R.3011, entitled "Security and Freedom Through Encryption (SAFE) Act." Lastly, Senator Burns recently introduced S.1726 referred to as the "Promotion of Commerce On-Line in the Digital Era (Pro-CODE) Act of 1996." The Pro-CODE bill offers the electronic commerce counterpoint to S.1587.

A. 1587

The purpose of 1587 is 1) to ensure that Americans are able to have the maximum possible choice in encryption methods to protect the security, confidentiality, and privacy of their lawful wire or electronic communications and 2) to establish privacy standards for key holders who are voluntarily entrusted with the means to decrypt such communications, and procedures by which investigative or law enforcement officers may obtain assistance in decrypting such communications.

B. S.1726

S.1726 would 1) relax current export controls by lifting restrictions on all encryption hardware and software, regardless of key length, that is "generally available" or in the public domain in the United States. Hardware and software not available in the mass market or public domain would fall under an export scheme that would currently allow up to roughly DES-strength (56-bit key length) security; 2) Give the Commerce Department exclusive jurisdiction over encryption exports, rather than the State Department; 3) Affirm domestic use and sale of encryption and explicitly prohibit mandatory key escrow; 4) Prohibit Commerce Department standard-setting activities on encryption; 5) Present broad new Congressional finding on the negative impact of current encryption regulations on electronic commerce.

C. H.R.3011

H.R.3011 is to amend title 18 of the United States Code, to affirm the rights of Americans to use and sell encryption, and to relax export controls on encryption. In general, the USC is amended by inserting after chapter 121 the following new chapter. Section 2801 - Definitions, Section 2802 - Freedom to use encryption, Section 2803 - Freedom to sell encryption, Section 2804 - Prohibition on mandatory key escrow, Section 2805 - Unlawful use of encryption in furtherance of a criminal act.

VIII. CONCLUSION

The current export control regime on strong cryptography is an increasing impediment to the information security efforts of U.S. firms competing and operating in world markets, developing strategic alliances internationally, and forming closer ties with foreign customers and suppliers. Export controls also have had the effect of reducing the domestic availability of products with strong encryption capabilities. The need for U.S. vendors to market their products to an international audience forces many of them to weaken the encryption capabilities of products available to the domestic market, even though no statutory restrictions are imposed on that market. Because of this, domestic users face a more limited range of options for strong encryption than they would in the absence of export controls. As demand for products with encryption capabilities grows worldwide, foreign competition could emerge at a level significant enough to damage the present U.S. world leadership in this industry. Overly restrictive export controls thus increase the likelihood that significant foreign competition will step into the vacuum left by the inability of U.S. vendors to fill a demand for stronger encryption capabilities integrated into general purpose products.

The U.S. has wrestled with instituting a viable encryption policy for years. Before a voluntary key recovery plan was proposed, there was a mandatory key escrow plan. Before the mandatory key escrow proposal, there were the reality of the ITAR regulations. As long as there has been an encryption export policy there has been criticism to follow. The new key recovery plan seems to be the most realistic proposal yet, but there are still some shortfalls. Many experts have stated that a 56-bit export limitation on cryptographic products is far below what is deemed acceptable today. Why then is the government using 56-bit technology as a starting point to institute the key recovery plans. Industry is being forced to use key recovery in order to be able to use a more powerful, albeit still too weak, encryption technology. Why should industry cooperate? Because industry stands to lose lucrative government contracts that will require the use of a key recovery plan. IBM and Hewlett Packard long with nine other major U.S. firms have already begun to study and design key recover plans that would conform to the government's requirements.

The time is ripe for a new export policy but there is no reason why U.S. citizens and industry should not have input as to the form that policy should take. Why have all recent cryptographic policies been instituted via executive order and not through the voices of the citizens? Encryption is complicated enough that all well founded concerns should be heard and addressed. Congress is the only way in which to do this. The encryption legislation that has been proposed aims to address the problems and concerns discussed in this paper and shows that encryption policy enjoys bipartisan concern. Both the House of Representatives and the Senate have held hearings concerning the state of U.S. encryption policy and extensive transcripts have resulted. There will most certainly be more debate regarding encryption policies when Congress reconvenes in January.

Endnotes

<1> Parallel Computing is a technique used to combine the computing power of many independent computers such that in tandem they have the equivalent power of a much larger system.
<2> Short for Bulletin Board System.
<3> MODEM is short for MOdulate DEModulate which refers to the way the device converts digital pulses to analog sound waves such that communication between digital instruments such as the computer is possible over analog telephone wires.
<4> "Hackers: Heroes of the Computer Revolution", Steven Levy; New York Times, June 12, 1994.
<5> Id. at 6
<6> Just as digital information can be represented as a sequence of zeros and ones or bits, so can an alphanumeric encryption key. Once the alphanumeric key has been converted to binary code, the bit-length of the key may be determined. Each zero or one occupies one bit in binary code. The longer the bit length of a key, presumably the harder it will be to guess the key and ultimately break the code.
<7> Codes use word or phrase substitutions. The major problem with codes is that they are generally complicated enough to have to be written down, and a code book could eventually fall into the wrong hands. - "Keeping Big Brother at Bay With an Encryption Machine"; Windows Magazine, July 1st 1994
<8> Ciphers use character substitutions and may or may not be easy to remember.
<9> Julius Caesar always used k=3. - Windows Magazine
<10> Id.
<11> Id.
<12> Named after the Sundae Rejewski was eating when he thought of the idea. - Id.
<13> Computer hero of World War II set quietly aside; National perspective - Boston Globe; June 3, 1994
<14> Id.
<15> Id.
<16> Windows Magazine
<17> Id.
<18> RSA Laboratories' "Answers to Frequently Asked Questions About Today's Cryptography - page 12; http://www.rsa.com/rsalabs/
<19> Id. at 11
<20> See infra "Digital Signatures and Timestamping"
<21> RSA FAQ at 12
<22> Id., see also Mariam Webster's Dictionary
<23> Kerberos is one example. Such an encryption system is good for centrally administered systems with a large number of users. As long as the key database is protected, the data should be safe.
<24> Id. at 15. See also W. Diffie and M.E. Hellman. New directions in cryptography. IEEE Transactions on Information Theory, IT-22: 644-654, 1976, and "Hackers: Heroes of the Computer Revolution", Steven Levy, New York Times June 12, 1994.
<25> RSA FAQ at 17
<26> For complicated mathematical reasons, the two keys are related such that it would be possible to transmit one's key freely without compromising security - Both keys would be required to "crack the code"
<27> If the recipient were to compromise the security of their private key by giving it away purposely or otherwise, or by misplacing it, the security of the communications can not be guaranteed.
<28> Id.
<29> Id.
<30> DES is the Data Encryption Standard, a block cipher (see infra note <36>) developed by IBM, and defined and endorsed by the US government in 1977 as an official standard. It is the most well known and widely used symmetric cryptosystem in the world. Id. at 69
<31> Named after three M.I.T mathematicians, Ronald L. Rivest, Adi Shamir, and Leonard M. Adleman, RSA is the most widely used public-key cryptosystem today and is often referred to as a defacto standard.
<32> Not all cryptography is implemented via software. There are electronic hardware solutions in the form of integrated circuits that also encrypt information. Id.at 22
<33> Id at 29
<34> Certificates are digital documents attesting to the binding of a public key to an individual or other entity. Certificates are issued by a certifying authority (CA) which can be any trusted central administration willing to vouch for the identities of those to whom it issues certificates and their association with a given key. Id. at 128.
<35> Id. at 19
<36> A hash function H is a transformation that takes a variable-size input m and returns a fixed-size string, which is called the hash value h. (h=H(m)). Id. at 97.
<37> Id. at 19
<38> See supra notes <20> and <21>
<39> PGP stands for Pretty Good Privacy. It was designed by Phillip Zimmermann and distributed freely on the Internet. PGP is a very strong encryption program.
<40> RSA works as follows: Take two large prime numbers p and q and find their product n=pq; n is called the modulus. Choose a number, e, less than n and relatively prime to (p-1)(q-1), which means that e and (p-1)(q-1) have no common factors except 1. Find another number d such that (ed-1) is divisible by (p-1)(q-1). The values e and d are called the public and private exponents, respectively. The public key is the pair (n,e); the private key is (n,d). The factors p and q maybe kept with the private key or destroyed. It is presumably difficult to obtain a private key d from the public key (n,e). If one could factor n into p and q, however, then one could obtain the private key d. RSA FAQ at 21.
<41> The obvious way to do this attack would be to factor the public modulus n into its two prime factors, p and q. From p, q, and e, the public exponent, the attacker can easily get d, the private exponent. Id. at 23
<42> One must find a technique to compute e-th roots mod n. Id.
<43> Id.
<44> Id. at 58
<45> Millions of Instructions Per Second
<46> Id.
<47> Id. at 24
<48> A Block Cipher transforms a fixed-length block of plaintext data into a block of ciphertext data of the same length using a secret key.
<49> Id. at 70
<50> Id. - citing M.J. Weiner. Efficient DES Key Search. Technical Report TR-244, School of Computer Science, Carleton University, Ottawa, Canada, May 1994.
<51> Id.
<52> Id.
<53> Id. at 54
<54> Id.
<55> Id.
<56> A Stream Cipher is a symmetric encryption algorithm that operates much faster than any block cipher (see supra note 35). Stream Ciphers operate on bits rather than blocks of plaintext.
<57> NIST is an acronym which stands for the National Institute of Standards and Technology. NIST is formerly known as the National Bureau of Standards and is a division of the U.S. Department of Commerce. NIST issues standards and guidelines that it hopes will be adopted by all computer systems in the US. In 1987 Congress passed the Computer Security Act, which authorized NIST to develop standards for ensuring the security of sensitive but unclassified information in government computer systems. In 1977 NIST declared DES (See supra note 20) the official U.S. encryption standard. RSA FAQ at 129.
<58> Id. at 69.
<59> Id. at 114.
<60> "Alan Turing's insight was that a simply described calculating machine could, with enough time and memory, calculate anything about that universe that was calculable: it could be a universal computer. His description of this machine -- a description that applies to everything called a computer today -- was so simple that it was taken to be a matter of pure mathematics. But a truly fundamental description of such a machine must take into account quantum mechanics, the underlying theory of physical reality; machines are a matter of physics, not math. It turns out that calculating machines working to quantum rules end up with different properties, and with the potential to do things that normal computers cannot do." - The economist Newspaper, Ltd. "An Enigma to unwrap a mystery"; April 30, 1994
<61> Id.
<62> RSA FAQ at 114.
<63> The economist Newspaper, Ltd. April 30, 1994 "An Enigma to unwrap a mystery"
<64> RSA FAQ at 114
<65> "Hackers: Heroes of the Computer Revolution", Steven Levy, New York Times June 12, 1994.
<66> "Cryptography's Role in Securing the Information Society" - http://www2.nas.edu/cstbweb/2646.html - May 30, 1996 p2
<67> Id.
<68> "Inter national Restrictions May Ease For Laptop Users" - The Encryption Revolution by Christine Hudgins-Bonafield; Network Computing ; http://techweb.cmp.com/nc/704/704f3travel.html
<69> http://www.cdt.org/crypto/clipper311/961001_Gore_stmnt.htm and http://www.rsa.com/PRESSBOX/releases/56bitGore.htm
<70> http://www.cdt.org/crypto/clipper311/961115_WH_pr.htm