From: owner-cypherpunks@toad.com
Date: Thu, 7 Mar 1996 06:52:33 +0800
Subject: No Subject
Message-ID: <QQafxp15094.199603062223@relay3.UU.NET>
MIME-Version: 1.0
Content-Type: text/plain



Note: downloaded from www.vtw.org so cannot guarentee correctness-

  "§2804. Unlawful use of encryption to obstruct justice"    
   "Whoever willfully endeavors by means of encryption to obstruct,   
   impede, or prevent the communication of information in furtherance 
   to a felony which may be prosecuted in a court of the United States, 
   to an investigative or law enforcement officer shall-..."

Interesting wording - sounds almost like if you impede the *commission* of 
a felony, you is been had. Keyword would seem to be "willingly". Suspect
they meant to say "...obstruct (etc) the investigation of a felony..."

  "(b) CONTROL OF EXPORTS BY SECRETARY OF COMMERCE.-
     "(1) GENERAL RULE.-Notwithstanding any other law, subject to
      paragraphs (2), (3), and (4), the Secretary of Commerce shall have  
      exclusive authority to control exports of all computer hardware,
      software, and technology for information security (including
      encryption), except computer hardware, software, and technology that    
      is specifically designed or modified for military use, including
      command, control, and intelligence applications.     

This would seem to extend ITAR, not limit it.

     "(2) ITEMS NOT REQUIRING LICENSES.-No validated license may be
      required, except pursuant to the Trading With The Enemy Act or the
      International Emergency Economic Powers Act (but only to the extent
      that the authority of such Act is not exercised to extend controls
      imposed under this Act), for the export or reexport of- 
      "(A) any software, including software with encryption capabilities, 
       that is- "(i) generally available, as is, and designed for 
                 installation by the purchaser; or
               "(ii) in the public domain or publicly available because 
                 it is generally accessible to the interested public in 
                 any form; or
      "(B) any computing device solely because it incorporates or employs 
       in any form software (including software with encryption 
       capabilities) exempted from any requirement for a validated license 
       under subparagraph (A). 

Microsoft's CryptoAPI seems OK. PGP would seem to fall under both (i) 
and (ii).

     "(3) SOFTWARE WITH ENCRYPTION CAPABILITIES.-The Secretary of Commerce 
      shall authorize the export or reexport of software with encryption 
      capabilities for nonmilitary end-uses in any country to which exports 
      of software of similar capability are permitted for use by financial 
      institutions not controlled in fact by United States persons, unless 
      there is substantial evidence that such software will be-
       "(A) diverted to a military end-use or an end-use supporting 
        international terrorism;
       "(B) modified for military or terrorist end-use; or     
       "(C) reexported without requisite United States authorization.

Thank you MasterCard/VISA for SET. Note that it does not seem to say that
you do not need a license, just that one shall not be witheld without
"substantial evidence".

      "(4) HARDWARE WITH ENCRYPTION CAPABILITIES.-The Secretary shall 
        authorize the export or reexport of computer hardware with 
        encryption capabilities if the Secretary determines that a product 
        offering comparable security is commercially available from a 
        foreign supplier without effective restrictions outside the United 
        States.     
 
Same comment except that token & INE vendors will have to demonstrate that 
a foreign competitor exists.

Real lawyers please comment.
					Warmly,
						Padgett