-Caveat Lector- from: http://www.wired.com/news/news/politics/story/21014.html <A HREF="http://www.wired.com/news/news/politics/story/21014.html">Political News from Wired News</A> ----- A Tax Break for Snoopable Code by Declan McCullagh 3:00 a.m. 30.Jul.99.PDT WASHINGTON -- If anyone in Washington qualifies as an ardent foe of encryption, it's congressman Porter Goss (R-Florida). Two years ago, the chairman of the House Intelligence committee tried to make it a crime to distribute privacy-protecting software, such as PGP or recent versions of Netscape Navigator and Internet Explorer. The plan failed, but Goss didn't give up. On Wednesday, he and the panel's ranking Democrat introduced a bill to jump-start the US market for encryption products with backdoors that would support government surveillance. ------------------------------------------------------------------------ See also: Report: Crypto Will Harm Society ------------------------------------------------------------------------ The "Tax Relief for Responsible Encryption Act" gives companies a 15 percent tax break on the costs of developing government-snoopable encryption products. Such products might support key recovery -- in which a copy of the secret key needed to unlock scrambled data is placed within reach of law enforcement -- or "other techniques." "This legislation offers a way out of the stalemate between those who view commerce and national security as an 'either-or' proposition," Goss said in a statement. Goss and 22 other House members also sent a letter to President Clinton asking him to organize a "summit" of industry executives and government officials to extract an agreement on encryption regulation. "It has become evident that your leadership on this issue is vital to resolve the equally legitimate interests of law enforcement, national security, privacy, and industry.... We believe that without your personal involvement on this issue now, our national security and public safety will suffer serious and needless consequences," the legislators said. Law enforcement groups and their allies in the Clinton administration have long pressed for snoopable encryption products, complaining that a parade of undesirables -- such as pedophiles, drug smugglers, and money launderers -- might use crypto to communicate in secret. But the idea of the government subsidizing potential privacy invasions doesn't appear to be wildly popular. "I think the government's role is to protect the individual liberties of its citizens -- they should be giving companies incentives to strengthen encryption," said Jennifer DePalma, a graduate fellow at the Institute for Humane Studies at George Mason University in Arlington, Virginia. "They should let the free market continue to put an emphasis on protecting people's privacy," she said. For its part, the House Permanent Select Committee on Intelligence is insisting that it's pushing a voluntary approach. The committee members have abandoned their hope for a ban on unapproved encryption software, a source said. The administration has pushed for a key recovery scheme, whereby law enforcement would gain access to "plaintext," or unencrypted, information. But the market has rejected such options. "Mandatory recoverability is a nonstarter," a committee staff member said. "Law enforcement doesn't need us to mandate access to plaintext domestically." "The congressman does not want to mandate recovery of encryption products. He wants to encourage products that have societal benefits," a spokesman for Goss said. The committee last week said in a report that a bill to roll back some export restrictions on encryption products would harm children while protecting "criminals and international thugs." "Child pornographers could distribute their filth unimpeded," the report said. "Pedophiles could secretly entice the children of America into their clutches. Drug traffickers will make their plans ... without the slightest concern that they will be detected. Terrorists and spies can cause unspeakable damage without even the possibility of being stopped before it is too late." Rep. Julian C. Dixon (D-California) is cosponsoring the measure, HR 2616. Related Wired Links: Industry Crypto Bill in Peril 21.Jul.99 Crypto Bound for Museum Bins 24.Jun.99 Rethinking Tech Exports 24.Jun.99 PC Exports: 'Like Banning Air' 10.Jun.99 Step Two for Encryption Bill 24.Mar.99 A Baby Step for Encryption 11.Mar.99 Copyright © 1994-99 Wired Digital Inc. All rights reserved. ----- Aloha, He'Ping, Om, Shalom, Salaam. Em Hotep, Peace Be, Omnia Bona Bonis, All My Relations. Adieu, Adios, Aloha. Amen. Roads End Kris DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. Proselyzting propagandic screeds are not allowed. Substance—not soapboxing! These are sordid matters and 'conspiracy theory', with its many half-truths, misdirections and outright frauds is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. 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