The proposals, which government and corporate officials are still reviewing, are unacceptable to the Computer Systems Policy Project and other groups that represent the computer security industry. The 64-bit limit on a code's length will quickly become outmoded as computers become stronger and better able to break the codes, Haggerty said. In addition, the government hasn't said under what circumstances law-enforcement agencies would be given access to the codes' keys or how escrow agents who hold the code keys would be chosen. Other governments don't mandate that key codes be kept in escrow, U.S. technology experts said. Overseas customers of U.S. technology companies are concerned that the Clinton proposal will allow the American government to look at their data.
Foreign companies are worried about back-door espionage.
The Computer Systems Policy Project wants the government to allow companies to retain control of the coding keys, said Executive Director Ken Kay. Overseas companies can apply for exemptions to receive stronger encryption in U.S. products, though the process is long and many applicants are rejected, security experts said. The number of export licenses issued by the Commerce Department fell to 10,000 last year from 25,000 in 1993 and is expected be little changed this year. Atalla said the restrictions already have cut its potential overseas revenue by 25 percent. These rules are holding us back from major projects that other companies are getting by default.