From: tcmay@got.net (Timothy C. May)
Date: Fri, 23 Feb 1996 04:28:22 +0800
To: cypherpunks@toad.com
Subject: TIS--Building in Big Brother for a Better Tommorrow
Message-ID: <ad5201ed18021004349b@[205.199.118.202]>
MIME-Version: 1.0
Content-Type: text/plain


In my last message I wrote:

---
....
statements I read. (The TIS statement points out that: "Separate licensing
arrangements are necessary for organizations desiring Data Recovery
Center ownership.", so there is the chance that if I want Grandma to be my
spare key holder she might have to pay bucks to TIS and pass their
scrutiny...if so, not a very nice option, and one which could turn even CKR
into BB-Enabled software with a change in DRC policies...see point below.)
....
---

Well, I've been looking at the DRC licensing steps, and it makes it clear
that becoming a DRC is an expensive proposition:

"A DRC technology license is priced at $30,000 for the first DRC, and
$10,000 for each additional DRC to the same customer. A mandatory secure
DRC computer system is available for $20,000 for each DRC location, plus an
annual maintenance fee of $10,000 for the first DRC and $5,000 for
each additional DRC. In addition, a royalty is charged against DRC service
fees at the rate of 10% of the revenue stream."

Not so expensive for a bank or other such business, but not something Mom
and Pop will be getting into anytime soon!

Also, it's clear to me that a DRC located in the United States is subject
to court orders and subpoenas to release keys (there is no "protection
against self-incrimination" in such cases, as the DRC is not in danger of
being incriminated....there _may_ be attorney-client privilege, depending
on whether the DRC is one's lawyer....lots of legal issues to explore).

And it's not clear from the documents if TIS (or the government) will
license/approve DRCs located in offshore locations, such as Anguilla or
Switzerland. (I don't mean for CKE use, and with CKE strength, I mean DRCs
for U.S. users of CKR.)

(Depends on what channel the DRCs use to communicate with U.S. operations,
doesn't it? If the Anguilla-based DRC must use CKE itself, then the
stronger CKR is only as strong as the weaker CKE used in the offshore
operation! Cache-22.)

--Tim May

Boycott "Big Brother Inside" software!
We got computers, we're tapping phone lines, we know that that ain't allowed.
---------:---------:---------:---------:---------:---------:---------:----
Timothy C. May              | Crypto Anarchy: encryption, digital money,
tcmay@got.net  408-728-0152 | anonymous networks, digital pseudonyms, zero
W.A.S.T.E.: Corralitos, CA  | knowledge, reputations, information markets,
Higher Power: 2^756839 - 1  | black markets, collapse of governments.
"National borders aren't even speed bumps on the information superhighway."