At issue is sophisticated software that allows users to scramble telephone and computer messages that move across computer networks and the Internet. Users, particularly businesses, want to keep their data private while law enforcement officials argue they need the power to unscramble the messages to investigate crime. Law enforcement has been arguing that this is critical to their continued operations. While the technology is sold domestically, the U.S. State Department has blocked efforts to export it, although foreign firms sell their software around the world. As it stands, codes may only be 40 bits long in exported software.
Bits are the electronic pulses that make up the data being transmitted.
In return, U.S. companies would have to design a system that would allow intelligence officials to get the code if they obtain a court warrant. The plan also would transfer authority over encryption export from the State Department to the Commerce Department, but it would give the FBI power to review export plans. That would have allowed computer or telephone communications to be scrambled while giving the government a set of decoding keys to allow for court-approved electronic surveillance. The latest plan is different than the clipper chip because it would make it more difficult for government to unscramble messages, government officials say. The keys could be held by third parties and their components would be spread across several companies.