House Intelligence Committe Votes on (FBI) Encryption Bill

      September 12, 1997
      
House Committee Casts Wide Net With Encryption Vote

      By JERI CLAUSING Bio
      
     W ASHINGTON The House Select Committee on Intelligence, in a vote
     that critics said would effectively outlaw software as we know it,
     on Thursday endorsed an FBI-backed encryption proposal requiring
     all data scrambling technology to be equipped with a spare key for
     law enforcement.
     
     The proposal would establish the first controls on domestic
     encryption technology and mandate a decryption system, called key
     recovery, that would give law enforcement access to computer
     communications with a court order.
     
     The bill casts such a wide net that software makers said it would
     cover virtually every type of software made today. There were also
     questions about its impact on telecommunications, such as digital
     phones.
     
     The Intelligence Committee vote during a closed meeting came as
     Louis J. Freeh, the director of the Federal Bureau of
     Investigation, continued to gain momentum for his proposal to
     mandate key recovery and strengthen export controls by giving the
     defense secretary a stronger voice in decisions about what
     technologies can be exported.
     
     It was the second committee vote this week gutting the Safety and
     Freedom Through Encryption Act, a bill by Representatives Bob
     Goodlatte, Republican of Virginia, and Zoe Lofgren, Democrat of
     California, that was designed to ease export controls on encryption
     technology and prohibit key recovery.
     
     The House National Security Committee on Tuesday tightened the
     export provisions. A third committee, Commerce, was prepared to
     also adopt a version of the Freeh plan Thursday, but then won a
     two-week delay to work on a compromise.
     
     Though few expect the Freeh plan to ever become law, the momentum
     his plan has gained on Capitol Hill this week has stunned civil
     libertarians, software makers and the SAFE sponsors. This summer,
     they watched the SAFE bill sail through the House Judiciary and
     International Relations committees and pick up more than 250
     sponsors. And they left for the August break confident of pushing
     it through the full House this fall.
     
     But since Congress has returned from its August break, Freeh and
     his agents have put on the full-court press, holding a series of
     classified briefings for members and winning support that goes even
     farther than the voluntary key recovery plan in the Senate's
     McCain-Kerrey encryption bill.
     
     Repeatedly this week, congressmen have cited classified briefings
     as moving them to support the bill. And Goodlatte and Lofgren have
     sat on the sidelines watching SAFE co-sponsors vote against the
     bill.
     
     Porter Goss, the Florida Republican who is the Intelligence
     Committee's chairman, said his committee adopted the amendments to
     the SAFE bill to make sure balance was struck between commerce and
     law enforcement, "to ensure that we do not plow full steam ahead
     into the 21st century's information age having seriously weakened
     our ability to protect the national security."
     
     "American citizens have a right to their privacy and their access
     to the freest possible markets. But they also have a right to their
     safety and security," he said. "Terrorist groups that plot to blow
     up buildings; drug cartels that seek to poison our children and
     those who proliferate in deadly chemical and biological weapons are
     all formidable opponents of peace and security in the global
     society. These bad actors must know that the United States' law
     enforcement and national security agencies, working under proper
     oversight, will have the tools to frustrate."
     
     Lofgren, while emphasizing that she takes her oath of secrecy very
     seriously, questioned the necessity of the briefings on this topic.
     
     "There is nothing being said that couldn't be or hasn't been said
     in public," she said. "But in closed meetings, misleading
     statements aren't always corrected."
     
     The Intelligence Committee version of the bill would, among other
     things, require that all encryption products manufactured and
     distributed for sale or use in the United States after Jan. 31,
     2000, include features that would allow law enforcement, upon
     presentation of a court order, to gain immediate access to
     "plaintext" data. It would still allow the use of current software
     even after that date.
     
     Peter Harter, public policy counsel for Netscape Communications
     Corp., said that bill "criminalizes the manufacture of software as
     we know it today and allows law enforcement to dictate industrial
     policy."
     
     Jerry Berman, executive director of the Center for Democracy and
     Technology, said the plan raises a number of privacy, computer
     security and constitutional questions. He compared it to being
     required to turn over your spare house key to the FBI.
     
     "This one would have to be available to the FBI and they could use
     it without you knowing about it," he said. "This is setting up a
     massive bureaucracy. It is setting up a whole search and seizure
     regime where there is no notice."
     
     One Commerce Committee member, Michael Oxley, Republican of Ohio, a
     former FBI agent, responded with a quote from Freeh: "We need a
     Fourth Amendment for the information age."
     
     Finding a balance between privacy, business and law enforcement was
     the theme repeatedly echoed by Commerce Committee members as they
     waited to hear whether leadership would give them two more weeks on
     the bill.
     
     "This means that there is not going to be encryption legislation
     this year," Berman said. "There's going to be a deadlock."
     
     Lofgren, however, remained optimistic.
     
     "I think this two week cooling-off period is probably good," she
     said. "We need to sort through this in a less-charged atmosphere."
     
     Several other encryption proposals are pending in the Senate,
     including a bill by Senators Bob Kerrey, Democrat of Nebraska, and
     John McCain, Republican of Arizona, which contains an
     administration-backed plan for voluntary domestic key recovery.
     
     The administration has insisted its position remains unchanged and
     that Freeh's more extreme position is independent. But William A.
     Reinsch, the Commerce Department's undersecretary for export
     administration, said on Wednesday that if the Freeh plan were
     adopted it would be considered.
     
     Sue Hofer, a spokeswoman in Reinsch's office, said the government
     doesn't want keys to everyone's communications. "We're talking
     about being able to seek lawful access if they can convince a judge
     you are a criminal," she said.

                 Copyright 1997 The New York Times Company