NYT op-ed: Computer Privacy: Your Shield? Or a Threat to National Security?

          September 24, 1997                             

          Computer Privacy: Your Shield?
          Or a Threat to National Security?

          By PETER WAYNER

          [T] he Internet has been roiling for the last few weeks
              as members of Congress have gathered in secret,
          closed-door sessions to determine how much security
          Americans will be allowed to use to protect themselves
          in cyberspace.

          The issue of encryption  
          -- the scrambling of
          e-mail and other         
          computer files so they   
          can't be read by others  
          -- is generating
          increasing tension between civil liberty groups, which
          assert that it is a basic privacy right essential to
          personal security, and law enforcement officials, who
          want the right to read whatever they please in the name
          of national security and crime fighting.

          On one side of the issue, the branches of the United
          States government responsible for law enforcement and
          intelligence are pushing for the enactment of laws that
          would make it illegal for Americans to encrypt computer
          files in a way that makes them unreadable by the police.
          In the wake of open committee testimony by officials of
          the Federal Bureau of Investigation and National
          Security Agency and meetings with members of Congress
          behind closed doors, this side, sensing it has captured
          the momentum, is pushing for quick legislation.

          On the other side, the computer industry and public
          interest groups as diverse as the American Civil
          Liberties Union and the National Rifle Association are
          struggling to put the brakes to legislation that they
          feel would subject citizens to unnecessary regulation,
          astronomical costs and a loss of civil liberties.

          The issue is reaching a crucial juncture, and members of 
          Congress may soon be called to decide the issue. The FBI wants a 
          law requiring that every encryption program used to scramble data
          include a secret back door, known
          as a "key recovery system," that the police could use
          for surveillance.

          The computer industry views these back doors as a
          burdensome regulation that criminals could easily thwart
          or ignore. What's more, many in the industry argue that
          the cost of a key recovery system could be as high as
          $100 billion, leaving taxpayers and law-abiding
          consumers to shoulder the expense and frustration of
          adding a back door to their system security -- and to
          suffer the consequences if the lock to that back door
          were ever broken.

          Congress as a whole seems unsure about how to proceed.

          Representatives Bob Goodlatte, Republican of Virginia,
          and Zoe Lofgren, a California Democrat, took a
          libertarian stance earlier this year when they
          introduced a bill they called Security and Freedom
          through Encryption. The legislation, known by the
          acronym SAFE, would have liberalized export controls to
          allow the United States software industry to compete
          internationally, and it would have added new criminal
          penalties for anyone who used encryption in the
          commission of a crime. It quickly attracted more than
          250 co-sponsors.

          But under heavy lobbying by the Clinton administration,
          SAFE has met increased resistance. Committees have
          gutted key provisions and added language that would
          sharply increase encryption regulations for Americans.
          Now, as Congressional leaders begin to search for a
          compromise position, some staff members say that SAFE is
          dead, while others predict that members who support the
          F.B.I.'s position will push for action on a much-altered
          version of the bill this year.

          Representatives Mike Oxley, Republican of Ohio, and Tom
          Manton, a New York Democrat, have vowed to push the
          House Commerce Committee, in a meeting scheduled for
          Wednesday, to include an amendment that would require
          the nation's software companies to add a key-recovery
          system to encryption software by Jan. 1, 1999.

          But even some of the strongest defendants of the
          intelligence agencies and their need to eavesdrop are
          unsure about how to proceed.

          Curt Weldon, a Republican from          
          Pennsylvania, led his National          
          Security Committee in the House to      
          add an amendment that would tighten
          the export controls to the SAFE bill,   
          effectively changing it from a          
          pro-industry bill to a
          pro-intelligence agency bill. Yet he    
          says he recognizes the need for         
          Americans to protect their secrets      
          against industrial espionage and        
          feels uncomfortable with the domestic   
          controls added by House's Select        
          Committee on Intelligence.              

          "We're moving too fast on this, and     
          we should slow down," Weldon said in    
          an interview. He added that he would    
          prefer waiting at least a year to       
          enact any encryption legislation.
                                                  
          As members of Congress struggle with    
          the nuances of privacy versus           
          national security, many people in the   
          computer industry wonder just how
          much this will cost. For example,       
          they point to a bill sponsored by       
          Senator Bob Kerrey, Democrat of         
          Nebraska, which would require that      
          all computers attached to a federally   
          financed network to include key         
          recovery for the police. The expense,   
          say industry insiders, could be         
          astronomical.                           

          There is no easy way to estimate the    
          cost for complying with some of the     
          new backdoor proposals already before   
          Congress because nothing as             
          all-pervasive has ever been             
          attempted. Estimates range wildly       
          from $2 billion to 100 billion.         
                                                
          At the same time, Congress is not
          eager to spend money to right         
          computer problems. Many systems       
          managers in government agencies are   
          already concerned about the arrival   
          of the year 2000, pointing out that   
          simply adding the extra two digits to
          all of the government's databases     
          could cost taxpayers billions of
          dollars. Paradoxically, Kerrey has    
          been a key critic of allocating money 
          to upgrade the Internal Revenue
          Service's computer system.            
                                                
          In fact, Kerrey's legislation could
          easily create the largest bureaucracy 
          ever -- by some estimates requiring   
          more record keeping than all the
          states' departments of motor          
          vehicles, the Internal Revenue        
          Service and the various welfare
          agencies combined. While no one knows 
          how Congress or the FBI intends to
          carry out key-recovery legislation,
          it is entirely possible that anyone installing a piece
          of software on a hard drive will need to register it
          like people now register a car with the Department of
          Motor Vehicles.

          While most people own only one car and file only one tax
          return a year, many computer users have multiple copies
          of programs like Quicken, Notes or Power Point. Each
          could require a separate registration if it includes
          encryption features -- and many users will be shocked to
          discover what qualifies as encryption, which is becoming
          increasingly common even in trivial programs like games
          because it is a good way to regulate copyright
          infringement.

          Many also express concern that the law could backfire
          and actually make Americans more vulnerable to attack.
          For example, in any system that features back-door keys
          for the police, a security breech involving a deeply
          placed Aldrich Ames-type operator could easily leak the
          secret master key. This in turn would allow terrorists
          or other criminals access to all the files in the
          nation, leading to a collapse of Internet security that
          some computer professionals have dubbed a "digital Pearl
          Harbor."

          The decision Congress must make is far from simple, and
          both sides use extreme cases and outright scare tactics
          to make their points. Officials at the Department of
          Justice, including the FBI, are fond of asking members
          of Congress whether they would want agents to be able to
          eavesdrop on criminals if their daughter were kidnapped.
          The other side points out that the kidnapping may never
          of happened if the daughter had encrypted her e-mail,
          thus preventing an electronic stalker from tracking her
          movements.

          Many members of Congress have taken classified,
          members-only briefings from the National Security
          Agency, which asserts that encryption software prevents
          it from vacuuming up data from throughout the world that
          are now easy to read. The briefings reportedly contain
          details about how United States military forces were
          able to gather crucial information about Iraqi troop
          movements during the Gulf War. Code breaking and
          electronic intelligence has been an important strength
          of the United States in every military conflict since
          the War for Independence.

          In a recent statement, Oxley declared: "Indeed, I would
          find it difficult to believe that a member who heard the
          briefing could walk away not committed to addressing
          security issues. Frankly, I wish everyone interested in
          this issue could have heard for themselves the alarming
          briefing that members of our committee heard."

          The details of the briefing, however, remain classified,
          presumably to protect the source of the information from
          being compromised.

          A report issued last year by the National Research
          Council, however, rejected the notion that the
          classified briefings were particularly compelling. Many
          members of the committee that wrote the report had
          access to the same intelligence examples but felt that
          the issue could easily be discussed in public. The
          committee rejected the backdoor plans supported by the
          FBI as too expensive and untested.

          At the same time, the Defense Department has voiced
          concern about its ability to defend the United States
          against information warfare, arguing that encryption is
          crucial for securing the Internet and protecting
          American citizens. One example cited is the case of
          AT&T, which recently withdrew from bidding on a contract
          in Argentina after competitors publicized tapes of
          conversations between the company's executives and
          regulators -- a leak that might never have occurred if
          encryption were used.

          The President's Commission on Critical Infrastructure
          Protection is also studying the need for encryption,
          although it has refused to address the issue publicly
          until its report is published in October. Privately,
          however, several members of the commission express
          concerns that police keys to everyone's back doors will
          be difficult to protect, leaving the nation more
          vulnerable to terrorism. At the same time, several
          members have said they are "under fairly strict orders"
          to fall in line with the FBI's push for key recovery.

          Much of the computer industry's       
          reaction is more practical as it      
          contemplates systems that would even  
          inadvertently preclude a way for      
          criminals to avoid police             
          surveillance. Some joke that proposed 
          legislation would even ban emoticons, 
          the smiley-face icons like :-) widely 
          used in Internet communications, at   
          least until someone can seek approval
          from the United States government. Others joke that
          Anita Hill could be locked up because the men in the
          government "just don't get" what she had to say.

          As absurd as they are, such jokes illustrate the
          pressure felt by the computer industry. The recent
          language approved by the House Select Committee on
          Intelligence defines encryption as "the transformation
          or scrambling of data, including communications, from
          plaintext to an unreadable or incomprehensible format,
          regardless of the technique utilized for such
          transformation or scrambling and irrespective of the
          medium."

          The language also calls for up to five years in prison
          for anyone convicted of selling software that fails to
          provide the police with "immediate access" to
          encryption.

          Broad language like that introduced by the House Select
          Committee on Intelligence is often used by Congress to
          avoid loopholes that criminals might exploit, but often
          such sweeping measures generate more problems than
          solutions.

          For example, many computer programs store their files in
          binary, a format that is unreadable by humans --
          something that computer users often discover when they
          try to use a file with either a different application or
          a different computer.

          One Congressional staff member who participated in
          drafting the legislation but asked not to be identified
          conceded that the bill would force developers of new
          software to seek approval for their products from the
          United States government even if the products did not
          explicitly include encryption features. Such approval
          would be the only way to escape prosecution, he said.
          While admitting that this language would add a six- to
          nine-month delay in releasing new products, the staff
          member asserted that the computer industry would simply
          have to build this time into product development cycles.

          The staff member also insisted that relatively rare
          languages like that of the Navajo Indians, which was
          used by the United Stated military for secret
          communications in World War II, would not be controlled
          by the legislation "because they are languages not
          codes." Secret codes like those used by baseball
          managers to communicate with their players would also
          not be affected, he said.

          Yet he could offer no solid definition for what
          constitutes a language, and the legislation does not
          offer users any guidance for what the police can and
          cannot reasonably be expected to comprehend.

                 Copyright 1997 The New York Times Company